There is a Schweser question at the end of LOS36 that I am really confused on.

Bond Issue [Maturity] Coupon Par () Price ()

Bond A: [2 years] 10% $1,000 1,170.12

Bond B: [1 year] 0% $1,000 985.22

Bond C: [2 years] 0% $11,000 10,667.28

It gave the above information, and also that the yield curve is flat at 1.50%. Then it proceeded to ask if you are able to make an arbitrage gain by selling 1 Bond A and simultaneously purchasing 10 Bond B and 10 Bond C. How do I solve for this?

Yes ran into that in the reading. I think the 10 is a typo, like S2000 said.

CFready, the way I solved for it is that you know either bond A or Bond B has to be a factor of 10, because Bond C is 10x more. Alternatively, bond A and bond B could both be a factor of 10 and you could have 2 of bond C. Then I just plugged in numbers brute force and see which one produces a profit. Maybe that way is slowest but it actually isnt too bad. And its easier because you have multiple choice so you just have to try 3 calcuations.