Use the following information about default-risk-free zero-coupon bonds to answer the question below. Suppose that a default-risk-free bond (with a face value (FV) of $1000 and 2 years to maturity) paying 5% coupons annually is currently trading at $1000. Assuming there are no transaction costs and no taxes, what arbitrage opportunity is available? Short sell a 1-year zero coupon bond with a FV of $50 and a 2-year zero coupon bond with a FV of $1050; buy the coupon bond with a FV of $1000. Buy a 1-year zero coupon bond with a FV of $50 and a 2-year zero coupon bond with a FV of $1050; Short sell the coupon bond with a FV of $1000. No arbitrage opportunity exists. Short sell a 2-year zero coupon bond with a FV of $1050; buy the coupon bond with a FV of $1000. Buy a 2-year zero coupon bond with a FV of $1050; Short sell the coupon bond with a FV of $1000