Problem 15-15 BOOK The yleld to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yield to maturity on 2-year- maturity coupon bonds with coupon rates of 12% (paid annually) is 5.8%. a. What arbitrage opportunity is available for an investment banking firm? The arbitrage strategy is to buy zeros with face values of $120 and $1250), 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.) Profit each bond Vint rences