Spot rates today look like this:

6 months = 5.5%

12 months = 5.25%

18 months = 5%

24 months = 4.75%

30 months = 4.5%

36 months = 4.25%

On question 4 you calculated the yield to maturity of a 3-year bond paying a 4.5% coupon rate. Call that Bond A. Now suppose there is another bond, call it Bond B, paying a 7% coupon rate, and suppose that it is priced in the market in such a way that its yield to maturity is equal to the value you calculated in problem 4 for the 4.5% coupon bond (Bond A).

Is there an arbitrage opportunity here or not? If not, why not? If yes, which bond is over priced and which one is under priced?