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The market prices of the bonds with face value of $100 will be as follow: Bond Price Time to maturity Coupon rate B1 $92 B2

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The market prices of the bonds with face value of $100 will be as follow: Bond Price Time to maturity Coupon rate B1 $92 B2 $88 6% B3 $85 B4 $98 10% Bonds B2 and B4 pay coupon annually. Is there any arbitrage opportunity? If any, how can you exploit it (and how much)? Suggested practice problems BKM chapter 14 (7, 8, 11, 13), chapter 15 (7, 9, 10, 13, 17). Note that these problems will not be graded

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