Question: I need some help with this multistep problem! Prices of zero-coupon, default-free securities with face values of $1,000 are summarized in the following table: Maturity

I need some help with this multistep problem!

Prices of zero-coupon, default-free securities with face values of $1,000 are summarized in the following table: Maturity (years) 1 2 3 Price (per $1,000 face value) $969.91 $939.09 $907.36 Suppose you observe that a three-year, default-free security with an annual coupon rate of 10% and a face value of $1,000 has a price today of $1, 185.41. Is there an arbitrage opportunity? If so, show specifically how you would take advantage of this opportunity. If not, why not? Is there an arbitrage opportunity? (Select the best choice below.)

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