b. The price of a 1-year zero coupon bond is 97% of the face value, the prices of corresponding 2-year and 3-year bonds are 96% and 91%, respectively. You are offered an opportunity to borrow $1m in year 1 (one year from now). The loan requires annual coupon payments of 4% of $1m in years 2 and 3, and you must repay the capital of $1m in year 3. Should you accept this offer? (9 marks)