Safe Storage Inc. will allow clients to store money or bonds for a fee of 0.3% of the amount stored per year, and the fee is paid at the beginning of the year. If someone stores money or bonds without using Safe Storage, the probability of loss is 0.7% per year. This loss represents the loss of thievery or the destruction of property. Assume that other transactions costs are zero. a. Suppose that the bond yield for a riskless one year bond with a face value of $1000 is -0.5%. i) Compute the bond price today to the nearest penny. ii) Describe an arbitrage opportunity. b. What is the lowest bond yield for a one year bond with face value of $1000 that is consistent with no arbitrage? Explain carefully. Quote your answer to the nearest basis point (one hundredth of a percentage point). Now a bank opens that stores cash deposits of any size for free with no chance of loss. c. What is the lowest level of bond yield for a one year bond with a face value of $1000 that is consistent with no arbitrage? Explain carefully. Quote your answer to the nearest basis point (one hundredth of a percentage point).