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The price of a 100 Par Value T-Bond maturing in 5 years and paying a 3.75% coupon is 98.50 . The bond's futures contract settling

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The price of a 100 Par Value T-Bond maturing in 5 years and paying a 3.75% coupon is 98.50 . The bond's futures contract settling in 2 months is priced at 97.25 . The two month CD rate is .55\%. What is the arbitrage profit? Hint. First determine which strategy (buy bond/short futures or sell bond/buy futures) results in an arbitrage profit. .72 1.78 .63 1.77

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