Question: (Chapter 6) - Consider the bond in question 3. If the bond is selling for $1,000, do you have an arbitrage opportunity? If so, please
(Chapter 6) - Consider the bond in question 3. If the bond is selling for $1,000, do you have an arbitrage opportunity? If so, please show how you build a replicating portfolio and earn an arbitrage profit. Please show the annual cash flows.
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