If a 180-day bank bill yields 6.5% and a 360-day (pure discount) bank-bill yields 7.0%, what is the no-arbitrage price of a 1-year bond with a face value of $1,000 and coupon rate of 6% pa. paid semiannually? (Assume a 360day year.) Supposing the bond in question 6 had a market price of $980.00, outline the arbitrage opportunity may be exploited