Suppose the prices (per $1000 face value) for risk-free zero-coupon bonds with different maturities are as below: 1-Yr 2-y1 3-yr 5-yr 10-yr $ 974.66 $953.86 $ 935.43 $ 879.56 $763.88 a. Based on the prices above, construct the risk-free yield curve. (5 points) b. What are the expected yields for a one-year zero-coupon bond (risk-free) one or two years from today? (5 points) 3 c. Price a 5-yr risk-free bond with a face value of $10,000 and a coupon rate of 5%. Assume annual coupon payment. (5 points) 5 6 d. Suppose the 5-yr risk-free bond priced in (c) is trading at $11,300. Is there any arbitrage opportunity? Explain. (5 points) B 0 1