Melissa Chen, CFA currently works for ABBonds, a company that provides price data for fixed-income instruments. Chen heads a team that inputs raw data into an instruconal area on ABBonds website. ABBonds uses these pages to provide hypothecal bond informaon along with a descripon of how to read and interpret the informaon. One of the ABBonds customers has quesoned whether some data used to demonstrate pricing is correct. The customer's email stated, "The prices of the three bonds used are not consistent with each other and hence may not be accurate. If they were, I would be able to make a significant arbitrage profit (i.e., I could secure the current risk-free rate of return with zero net investment)." Chen thinks the customer is misinformed regarding arbitrage gains, but wants to check the data anyway. The relevant data for three hypothecal risk-free bonds is shown in Figure 1, given that the benchmark yield curve is flat at 1.50%. Figure 1: Bond Pricing Data Bond Issue Maturity Coupon Par ($) Price ($) FFPQ 2 years 10% $1,000 1,170.12 DALO 1 year 0% $1,000 985.22 NKDS 2 years 0% $11,000 10,667.28 This question relates to Problem 1. Given the three bonds in Figure