Please solve in excel or word.

roblem 3 A) Suppose that the following holds: (1+fn,n+k)k(1+YTMn)n>(1+YTMn+k)n+k, where fn,n+k is the forward rate from period n up to period n+k,YnMn is the yieldto-maturity of an n-period zero-coupon bond, and YTMn+k is the yield-to-maturity of an n+k period zero-coupon bond. Describe the trading strategy that would generate riskless profit with probability one, i.e., the arbitrage opportunity. How would this trading strategy affect fn,nk, YTM n, and YTMn+k ? What is the equilibrium relation between these three variables? B) Suppose that the following holds: (1+fn,nk)k(1+YTMn)n(1+YTMn+k)n+k, where fn,n+k is the forward rate from period n up to period n+k,YnMn is the yieldto-maturity of an n-period zero-coupon bond, and YTMn+k is the yield-to-maturity of an n+k period zero-coupon bond. Describe the trading strategy that would generate riskless profit with probability one, i.e., the arbitrage opportunity. How would this trading strategy affect fn,nk, YTM n, and YTMn+k ? What is the equilibrium relation between these three variables? B) Suppose that the following holds: (1+fn,nk)k(1+YTMn)n