Please only answer part e) and attach any Excel formulas used

9. (Coupon stripping, arbitrage) You are given the following information on three traded bonds making annual coupon payments: CHAPTER 15 Bond Valuation 505 A B D E 1 Bond Coupon rate 0.00% 5.00% 10.00% 2 3 4 Face value $1,000 $1,000 $1,000 A B Maturity 1 2 2 Yield to maturity 5.00% 5.85% 6.00% c. a. What are the prices of the above three bonds? b. What is the zero-coupon bond yield for a 1-year bond? What is the zero-coupon bond yield for a 2-year bond based on the price of bond B? d. What is the zero-coupon bond yield for a 2-year bond based on the price of bond C? e. Challenge question: Create an arbitrage strategy from buying and/ or selling a combination of the three bonds