Maturity (years) Zero-rate(%) 1 3.0 2 4.5 3 5.5 What is the implied forward rate ro(2, 3)? (a) 6.00% (b) 6.75% (c) 7.50% (d) 7.53% A bank offers a special bond A through which investors can borrow (lend) $100 in year 2 and repay (receive) $100 xe0.07 in year 3. Is there an arbitrage? If so, what is the arbitrage's net cash flow in year 0? (Consider an arbitrage strategy where we use one unit of bond A and the net cash flows are zero from years 1 through 3) (a) 0.392 (b) 0.456 (c) 0.499 (d) 0.538