Consider a game of chance using one coin. To enter the game, you pay a 1 fee. You win a dollar if it is a head and you lose two dollars if it is a tail. There is also a zero-coupon bond with a face value of1 and a price of 0.8. Is there an arbitrage opportunity?

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a. Compute the yield to maturity (YTM) of a zero-coupon bond wi... | Filo