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The yield to maturity (YTM) on 1-year zero-coupon bonds is 5%, and the YTM on 2-year zeros is 6%. The yield to maturity on 2

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The yield to maturity (YTM) on 1-year zero-coupon bonds is 5%, and the YTM on 2-year zeros is 6%. The yield to maturity on 2 -yearmaturity coupon bonds with coupon rates of 12% (paid annually) is 5.8%. Required: a. What arbitrage opportunity is available for an investment banking firm? b. What is the profit on the activity? Complete this question by entering your answers in the tabs below. What arbitrage opportunity is available for an investment banking firm

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