What is the profit on the activity

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The yield to maturity (ytm) on a 1 year zero coupon bond is 5% and the ytm on 2 year zeros is 6%. the yield to matruity on a 2 year maturity coupon bonds with coupon rates of 12% (annualy) is 5.8%. what arbitrage opportunity is available for an investment banking firm? what is the profit on the activity?

Reference no: EM13281747

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