You are given the following zero-coupon bond prices (same as question 2.1): Maturity (term) Price 1 year 99.01 2 years 97.07 3 years 93.54 (a) Find the no-arbitrage price of a 3-year coupon bond with annual coupons of 1.5%. (b) Suppose a 3-year coupon bond with annual coupons of 1.5% currently trades for par. Exploit this arbitrage opportunity and explain each step. (c) In (b), how should you adjust quantities bought or sold to have a zero cost at time 0? What are the future cash flows then?