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Bond A is a 1 year bond. Current market price (P) is USD936 and zero coupon C=0 Bond B is a 2 year bond. P=879

Bond A is a 1 year bond. Current market price (P) is USD936 and zero coupon C=0

Bond B is a 2 year bond. P=879 C=0

Bond C is a 3 year bond. C=10% P=1129

Bond D is a 3 year bond. P=840 C=0

Assume a face value of 1000. Is there an opportunity for any arbitrage? Explain why or why not.

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