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You can buy or sell the following riskless bonds. All bonds mature at Year 3. Their prices today and

You can buy or sell the following riskless bonds. All bonds mature at Year 3. Their prices today and cash flows at the end of each year are the following: Bond Price CF Year 1 CF Year 2 CF Year 3 A 94 4 4 104 B 100 6 6 106 C 112 12 12 112 Being a well trained finance person, you quickly make a simple calculation and take a position to lock in an arbitrage profit of $6 today with no future net cash flo

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