Question: ( 9 ) In Example ( 8 . 3 . 3 ) we calculated the two - year spot rate and found r 2 ~~

(9) In Example (8.3.3) we calculated the two-year spot rate and found r2~~ 3.866088985%. Explain how there would be an arbitrage opportunity if there was a two-year zero-coupon bond available with a yield rate of 3.5%.
( 9 ) In Example ( 8 . 3 . 3 ) we calculated the

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