Following is the term structure of the risk-free rate:

Term (years)	Interest rate (per year)
1	4.0%
2	4.5%
3	5.0%

In the market, a bond that will pay $100 in year 3 currently sells for $80. An investor realizes that this market price is different from the present value of the bond. Recognizing the price deviation, the investor wants to make an arbitrage (risk-free and immediate profits requiring zero investment). Which of the following strategies results in an arbitrage?

Group of answer choices

Buy the bond + Borrow money with a promise to pay $100 in year 3

Buy the bond + Lend money and receive $100 in year 3

Sell the bond + Lend money and receive $100 in year 3

Given the prices, arbitrage does not exist.