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Suppose that the 4year maturity coupon bond paying a 10% coupon rate is priced in the market at 1000. At the market interest rate of
Suppose that the 4year maturity coupon bond paying a 10% coupon rate is priced in the market at 1000. At the market interest rate of 8%, is there any arbitrage opportunity? If yes, what would be your strategy to exploit this opportunity
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