You observe the following yields-to-maturity in the market:

Maturity	Coupon	YTM
1	5%	2.5%
2	5%	3.2%
3	5%	4%
4	5%	3.8%
5	5%	3.5%

a. Compute the prices of the 5 coupon bonds.

b. Compute the implied term structure of iterest rates.

c. Suppose the price of an 8% 5 year coupon bond is 102. Is there an arbitrage opportunity?If not, explain why. If yes, show how you can exploit it, and what your profits would be.