Please show me the steps as well to help me learn. I have tried 16.59 or 16.57.

The yield to maturity (YTM) on 1-year zero-coupon bonds is 8% and the YTM on 2-year zeros is 9%. The yield to maturity on 2-year- maturity coupon bonds with coupon rates of 11% (paid annually) is 8.5%. a. What arbitrage opportunity is available for an investment banking firm? The arbitrage strategy is to buy zeros with face values of $ 110 and $ 1110 and respective maturities of one year and two years. b. What is the profit on the activity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Profit $ 16.58 X each bond