Problem 8 (40 points) Time Spot Rate lyear 4.500% 2 years | 5.00% You are given the following price of $1,000 par value bonds with 8% annual coupon. (1) one year $1,025.55 (2) two year $1,051.29 Determine whether arbitrage is possible with the two bonds and with zero coupon bonds using the given spot rates. If arbitrage is possible, determine the amount of that profit and when it is realized. Assume that there are no transaction fxes and no margin requirement on short sales