You are given the following information on zero coupon bonds: Term Zero coupon yield r(0,t) 3.00% 6.00% a) Calculate the implied 2-year forward rate two years from now [i.e. r(2,4)][4 Marks] b) Suppose that you can enter into a forward rate agreement for r(2,4) at a rate of 10%. Use a cash flow table to illustrate how you can take advantage of this arbitrage opportunity. HINT: you should have a riskless profit with no investment at the end of year 4. [10 Marks]