Suppose that the 4-year maturity coupon bond paying a 10% coupon rate is priced in the market
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Suppose that the 4-year maturity coupon bond paying a 10% coupon rate is priced in the market at £1000. At the market interest rate of 8%, is there any arbitrage opportunity? If yes, what would be your strategy to exploit this opportunity?
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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