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19. You would like to profit from what you perceive to be a mispricing in...

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19. You would like to profit from what you perceive to be a mispricing in the markets. You note the following: A 10-year riskless bond issued today is paying semiannual coupons witha coupon rate of 5%. This bond is trading at par. A 10-year fixed-for-floating swap has a swap rate of 3%. The strategy you could employ is: a. You take a long position in the bond and enter into a fixed-for-floating swap b. You take a long position in the bond and enter into a fixed-for-floating swap c. You take a short position in the bond and enter into a fixed-for-floating swap d. You take a short position in the bond and enter into a fixed-for-floating swap e. There are no profitable strategies possible given the above prices. where you agree to pay floating and receive the fixed rate. where you agree to pay fixed and receive the floating rate where you agree to pay floating and receive the fixed rate. where you agree to pay fixed and receive the floating rate

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