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The yleld to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yleld to maturity on 2-yearmaturity

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The yleld to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yleld to maturity on 2-yearmaturity coupon bonds with coupon rates of 12% (paid annually) is 5.8%. a. What arbitrage opportunity is available for an investment banking firm

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