Question: ARBITRAGE: Set up an arbitrage table for the 4-year forward bond at time 1 (i.e., f(4,1)) if the actual rate is 6.5%. Show rates and

ARBITRAGE: Set up an arbitrage table for the 4-year forward bond at time 1 (i.e., f(4,1)) if the actual rate is 6.5%. Show rates and prices to 4 decimal places (X.XXXX%; $XX.XXXX). Action is buy (long) or sell (short). Type is identifying the security, such a 1-year bond, 2-year forward bond, etc.

Arbitrage Table Qty Time Periods Action Type Net CF PV(Net)

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