Please, do not solve a). Answer for a) is $968.96.

I am interested in the profit you can make in the arbitrage and how (from the data) do you obtain it. For instance, for b), I know that the investor can sell short the bond in the market at 968.96 and then buy the exact same bond from the broker quoted $960. Therefore, the profit (supposing there's no transactional costs) would be $8.96. Fine. But would (the investor) have to buy more than one bond from the broker? If so: why? Thanks!

Table: Yield Curve for Brazilian Zero-Coupon Bonds Time to 1 year 2 year 3 year 4 year 5 year YTM 3.66% 4.20% 5.10% 6.20% 6.75% a) There is a 4-year maturity bond, with a par value of 1,000 and that has an 5.3% coupon. Please calculate the price of this coupon bonds. b) A broker quoted the bond at 96 (or 960 per bond); can you think a possible arbitrage? c) If another broker offers you the same previous bond but at 99 is there a possible