Which of the following investment alternatives includes an arbitrage opportunity? Bond A: The yield for a 3%
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Which of the following investment alternatives includes an arbitrage opportunity?
Bond A: The yield for a 3% annual coupon 10-year bond is 2.5% in New York City. The same bond sells for $104.376 per $100 face value in Chicago.
Bond B: The yield for a 3% annual coupon 10-year bond is 3.2% in Hong Kong SAR. The same bond sells for RMB97.220 per RMB100 face value in Shanghai.
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