Using the benchmark par curve, you bootstrapped the followin…

Using the benchmark par curve, you bootstrapped the following spot rates: S1 = 2.00% S2 = 3.0151% S3 = 4.0545% Identify any arbitrage opportunities available for the following bonds: Bond Issuer Maturity Coupon Market Price Alpha Corp 3 Years 0% (Zero) €87.25 Beta Inc. 2 Years 5% (Annual) €105.50 Ignoring trading costs, which of the following actions generates the highest expected profit?

Your Bloomberg terminal provides you with the following benc…

Your Bloomberg terminal provides you with the following benchmark par curve (annual pay): 1-Year: 1.0% 2-Year: 2.0% 3-Year: 3.0% You identify two bonds in the market: Bond X: 2-year, 4.0% annual coupon bond trading at €103.75 Bond Y: 3-year, zero-coupon bond trading at €91.55 Using the bootstrapping method to determine arbitrage-free values, which of the following actions is the most profitable?