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You are a bond trader and closely monitor the Treasury bond market. You find the following information about three bonds. These three bonds have a

You are a bond trader and closely monitor the Treasury bond market. You find the following information about three bonds. These three bonds have a face value of $1000, and a maturity of 10 years.

Bond CR YTM Price

A 3% 5% $845.56

B 5% 4.5% $1039.56

C 7% 5% $1154.43

(1) Is there an arbitrage opportunity?

(2) How can you profit from it?

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