Question 4 (25 min, 20 points) Please see the information on the three default-free bonds in the PDF file. (a) What is the price of a 3-year 6% annual coupon bond with the face value of $1,000? [5 pt.) (b) What is the YTM of the bond described in (a)? (5 pt.) (c) The current market price of the bond in (a) is $900. Construct a portfolio to enjoy an arbitrage opportunity. [5 pt.) (d) Now assume that the bond in (a) defaults for sure in year 3. The bond issuer will pay 90% of the face value (and 100% of the coupon). What is the YTM of the bond? (5 pt.]