I need uestion5 done

Here is the question 4 mention in 5

5) Prove: In a world with no risk, all assets must have the same rate of return. Similar idea to #4: start with two assets with different returns, find the arbitrage, discuss the transition to a no-arbitrage equilibrium. 4) As you sit at your desk scanning the bond market, you notice the $300 annuity from #1 is called Bond X. You also find bond Y, which offers $100 a year for 10 years, and currently sells for $700. Using the idea of a replicating portfolio, show there is an arbitrage here. This one is a little different than in class. You can buy the bonds (you pay cash today, but you get the payments) or issue/sell short (you get cash today, but you owe the future payments). You can buy multiple bonds, too. 5) Prove: In a world with no risk, all assets must have the same rate of return. Similar idea to #4: start with two assets with different returns, find the arbitrage, discuss the transition to a no-arbitrage equilibrium. 4) As you sit at your desk scanning the bond market, you notice the $300 annuity from #1 is called Bond X. You also find bond Y, which offers $100 a year for 10 years, and currently sells for $700. Using the idea of a replicating portfolio, show there is an arbitrage here. This one is a little different than in class. You can buy the bonds (you pay cash today, but you get the payments) or issue/sell short (you get cash today, but you owe the future payments). You can buy multiple bonds, too