Prices of zero$-$coupon, default$-$free securities with face values of $$1,000$ are summarized in the following table: $($Click on

the following icon $$ in order to copy its contents into a spreadsheet.$)$

Suppose you observe that a three$-$year, default$-$free security with an annual coupon rate of $10\%$ and a face value of

$$1,000$ has a price today of $$1,181\mathrm{.}98$ Is there an arbitrage opportunity? If so$,$ show specifically how you would take

advantage of this opportunity. If not, why not?

Is there an arbitrage opportunity? $($Select the best choice below.$)$

A$.$ Yes

B$.$ No

C$.$ Not enough information.

How would you take advantage of the arbitrage opportunity? $($Select from the drop$-$down menus.$)$

Buy coupon bond$($s$),$ sell short one$-$year Zero$($s$),$ sell short two$-$year Zero$($s$),$ and sell short

three$-$year Zero$($s$).$