Question: n Example ( 8 . 3 . 3 ) we calculated the two - year spot rate and foundr 2 3 . 8 6 6

n Example (8.3.3) we calculated the two-year spot rate and foundr23.866088985%. Explain how there would be an arbitrage opportunity ifthere was a two-year zero-coupon bond available with a yield rate of3.5%.

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