Arbitrage Free Valuation or the Law of One Price: On February $15,2008,$ traders could buy and sell two US Treasury securities with the same maturity T $=9\mathrm{.}5$ years, but with different coupon rates. In particular a T$-$note with coupon rate C $=4\mathrm{.}750\%$ and a T$-$note with coupon rate C $=8\mathrm{.}875\%$ were available. Table $2$ below gives the term structure of interest rate or yield curve on February $15,2008.$ Columns $1$ to $6$ display coupon rates, maturities, and quotes of the latest issued US Treasury securities as of February $15,2008.$ Column $7$ displays the discount prices or factors Z $(0,$ T$)$ obtained from the bootstrapping procedure discussed in class. Using he information in Table $2$ conduct the following analysis:

Determine the fair price or arbitrage free value of the $4\mathrm{.}750\%$ coupon T$-$note and $8\mathrm{.}875\%$ T$-$Note, by viewing each bond$$s cash flows as portfolio of zero$-$coupon bonds.