Question: 4.[10 points) There are four bonds, A, B, C, D, with the following cash flows (dates in years, entries in $): Date 0 1 2

4.[10 points) There are four bonds, A, B, C, D, with the following cash flows (dates in years, entries in $): Date 0 1 2 3 -134 150 10 30 B -0.8 1 0 0 -0.7 1 0 D 0 0 -0.5 1 0 (a) (Apts) Construct an arbitrage in this market. (b) (Ipt) To climinate the arbitrage opportunity, what should be the price for A? (c) (5pts) To eliminate the arbitrage opportunity, what should be the price for D?2

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