Please provide with solutions and answers for 2questions

Use the table for the question(s) below.

	Market Price	Cash Flow in One Year
Security	Today	Poor Economy	Good Economy
A	200	840	0
B	600	0	840
C	???	840	4200

3) Suppose that security C had a risk premium of 30%, describe what arbitrage opportunity exists (if any) and how you would exploit it.

4) Suppose that a bond is purchased between coupon periods. The days between the settlement date and the next coupon period is 115. There are 183 days in the coupon period. Suppose that this bond has a coupon rate of 7.4% and there are 10 semiannual coupon payments remaining.

a) Assuming that the par value is $100, what is the clean price for this bond if a 5.6% discount rate is used?

) What is the accrued interest for this bond?

C) What is the dirty price? (i.e., invoice price)