4. [6pts] Given the following: a. The yield on a five-year, risk-free Treasury-note = 5%- b. The yield on a five-year, BB-quality bond = 8%, with the 3% spread reflecting only credit risk c. The credit spread on a five-year CDS on the 5-year, BB-quality bond of 2% (1) [2pts] Explain how a bond investor looking for a five-year, risk-free investment could gain a 1% yield over the risk-free investment by using a CDS. (2) [2pts] Explain what an arbitrageur would do. (3) [2pts] Comment on the impact the actions by investors and arbitrageurs would have on determining the equilibrium spread on a CDS