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Two banks are willing to borrow/loan money at a specified interest rate. Bank one has a rate of 7% monthly compounding. Bank two has a

Two banks are willing to borrow/loan money at a specified interest rate. Bank one has a rate of 7% monthly compounding. Bank two has a rate of 7.2% semi-annual compounding. Is there an arbitrage? If so, map out the strategy and determine the arbitrage profit per $1 mn.

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