Suppose the spot rates of interest for investment horizons of 1, 2, and 3 years are, respectively, 4.0%, 4.2%, and 4.3%, and the 1-year forward rates of interest for payments due at time 1 and 2 are, respectively, 4.4% and 4.6%.

a.) Do the above rates violate the no-arbitrage relationship concerning spot and forward rates of interest?

b.) If so, describe an arbitrageur's strategy to make riskless profits.