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pants) There are four default-free bonds on the market. All bonds mature at or before the end of Year 3. Their prices today and cash

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pants) There are four default-free bonds on the market. All bonds mature at or before the end of Year 3. Their prices today and cash flows at the end of each year are the following: CF Year 1 15 Bond A B D Price 124.67 99.89 100.12 95.23 CF Year 2 20 10 107 CF Year 3 125 115 5 7 100 Is there an arbitrage opportunity? If yes show the arbitrage and state your investment strategy

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