4, (10 points) Consider the following three bonds (settlement: 2/15/94). Coupon Rate Maturity Price 8/15/94 101:20 6 8 12/15/95 101:18 2/15/95 103:24 Construct a portfolio of the 6 and the 72 bonds which replicates the cash flows of the 5 boned. Please compare the price of the replicating portfolio to the price of the 5 bond. If there is an arbitrage opportunity, please state your trading strategy 4, (10 points) Consider the following three bonds (settlement: 2/15/94). Coupon Rate Maturity Price 8/15/94 101:20 6 8 12/15/95 101:18 2/15/95 103:24 Construct a portfolio of the 6 and the 72 bonds which replicates the cash flows of the 5 boned. Please compare the price of the replicating portfolio to the price of the 5 bond. If there is an arbitrage opportunity, please state your trading strategy