4. Bellow assume you can buy and sell a fraction of a bond. Also, assume you are allowed to sell a security even if you do not own it (i.e., short selling is allowed). (a) Assume the price of a 1 year zero coupon bond with a face value of $1000 is $800 and the price of a 2 year zero coupon bond with a face value of $1000 is $640. i. (10 points) What should be the price of a 2 year 8% annual coupon bond with a face value of $1000 ? ii. (9 points)Show in detail how you can make an arbitrage profit if the price of a 2 year 8% annual coupon bond is 730, by describing the positions you need to take in each of the bonds