Question: Is there a profitable arbitrage opportunity for the bonds shown below? If so, please demonstrate clearly. All prices are per $100 in face value.

Is there a profitable arbitrage opportunity for the bonds shown below? If so, please demonstrate clearly. All

Is there a profitable arbitrage opportunity for the bonds shown below? If so, please demonstrate clearly. All prices are per $100 in face value. Term to maturity 6-months Price $95 $105 $98 Cash flow today 1-year 1-year Action today Coupon 0 10% annual (paid semi-annually) 0 Cash flow in 6 mo. Cash flow in 1 year

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