Question: Please help me to show the step-by-step to get the right answer. I really need it ASAP. Thank you. Suppose that yield rates on zero

Please help me to show the step-by-step to get the right

Please help me to show the step-by-step to get the right answer. I really need it ASAP. Thank you.

Suppose that yield rates on zero coupon bonds are currently 2.1% for a one-year maturity, 3% for a two-year maturity and 4.1% for a three-year maturity (all effective annual rates) Suppose that someone is willing to borrow money from you starting one year from now to be repaid three years from now at an effective annual interest rate of 6.5146438635185%. Construct a transaction in which an arbitrage gain can be obtained. What is your positive net gain for net investment of O? Inet cashtlowatt-3) 01345 One possible correct answer is: 0.030250290387703 Suppose that yield rates on zero coupon bonds are currently 2.1% for a one-year maturity, 3% for a two-year maturity and 4.1% for a three-year maturity (all effective annual rates) Suppose that someone is willing to borrow money from you starting one year from now to be repaid three years from now at an effective annual interest rate of 6.5146438635185%. Construct a transaction in which an arbitrage gain can be obtained. What is your positive net gain for net investment of O? Inet cashtlowatt-3) 01345 One possible correct answer is: 0.030250290387703

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