Zero coupon bonds with $1,000 face values trade at the following prices: Years to maturity 1 2 3 Zero coupon bond price $980.00 $960.00 $925.00 (a) What is the no-arbitrage price of a coupon-bond with $1,000 face value, 3 years to maturity, and a 5% coupon rate? (2 points) No-arbitrage coupon bond price: (b) If the coupon bond trades at a price higher than the one you found in part (b), what trade would you make to take advantage of this arbitrage opportunity? Assume you buy/ sell exactly 100 coupon bonds (with total face value $100,000), and that you can buy / sell any fraction of the zero-coupon bonds you want. (4 points) Asset Buy/Sell? Quantity 100 Coupon bond One-year zero Two-year zero Three-year zero