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you obtain the following information regarding three bonds: Bond Coupon Rate (%) Yield to Maturity (%) Years to Maturity Par Value ($) A 4 5
you obtain the following information regarding three bonds:
Assume you can buy or sell not more than one of each bond. Can you make an arbitrage here, and if so how much money will you earn?(Points : 8.33) |
Can earn approximately $24 Can earn approximately $14 No arbitrage opportunity exists Can earn approximately $34 The only way is to lose $24
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