Question 3 2 points In the Treasury futures market, you can buy a 1-year Treasury bill futures for delivery four years from now. When it is delivered, you will pay x. One year later, when the bill matures, you will get $1000. The four-year zero-coupon Treasury term rate is Ja +r+)(1+rf+r)(1+r$+7})(1+rf+74) 1 The five-year zero-coupon Treasury term rate is J(1+r:)(1+r+r%)(1 +of+7})(1+r+r!)(1+og+rs) 1 $1000 A. You can get $1000 in five years by buying y= *(1+r)s in five-year zero-coupon Treasury notes today. B. As noted, you can get $1000 in five years by buying a futures contract that will require me to pay x in four years. I can get x in four years by buying 2= n* in four-year zero- (1+r)* coupon Treasury notes today. The two strategies both get me $1000 in five years with a only a cash outlay today, y for strategy A and z for strategy B. The absence of arbitrage hypothesis requires that y=z. Assuming there is no arbitrage, what is x? What does your result show about the relationship between futures prices and forward rates