Ms. Kim manages a superannuation fund that will provide retired workers with perpetuities that pay out $3million coupon per annum. The annualized yield to maturity is 5%. Ms. Kim aims to fully immunise the obligation of perpetuities using six-year and 30-year maturity zero-coupon bonds. How much market value of six-year zero-coupon bond is required today to immunise the obligation? Please choose the correct range for the market value, i.e., if the market is $10million, please select "A value between $5million and $15million" 7 O A value between $15million and $25million O A value between $5million and $15million O A value between $25million and $35million O A value between $1million and $5million O None of the other answers are correct. You observe bonds with the following cash flows from year 1 to year 3: Bond Price Today Year 1 Year 2 Year 3 320.10 30 30 300 B 4.5 0 5 0 8.27 10 0 0 D 8.25 0 0 10 Do these bonds present an arbitrage opportunity? If so, how to profit from it? Yes, there is an arbitrage opportunity, Long 6 Bond B. long 3 Bond C, long 30 Bond D, and short 1 Bond A. There are no arbitrage opportunities Yes, there is an arbitrage opportunity. Short 6 Bond B. short 3 Bond C. short 30 Bond D, and long 1 Bond A Yes, there is an arbitrage opportunity, Long 3 Bond B. long 1 Bond C. long 15 Bond D, and short 1 Bond A O None of the other answers are correct