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1. Suppose you are given the following features of Bonds A, B, and C. (Note that all three bonds have a maturity of 1 year,

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1. Suppose you are given the following features of Bonds A, B, and C. (Note that all three bonds have a maturity of 1 year, which complicates the equations but not the linear algebra in Excel.) 1a. If you want to create a synthetic version of Bond C, how many units of B ond A and B ond B would you have to buy/sell? (20 points) Quantity of A= Quantity of B= 1b. What is the arbitrage-free price of Bond C ? (10 points)

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