You are given the following details of a number of risk free coupon bonds. Price of bond Cash flow Yr Cash flow Yr2 Cash flow Yr3 100 105 99 5 98 5 105 5 105 Suppose you can borrow 100 at the end of year 1 and repay 108 at the end of year 3. Is this borrowing opportunity attractive? How much would you be prepared to pay for entering into such an agreement? Explain your answer carefully.