Question: pls provide hand written solution 4. Suppose that 1-year zero rate with yearly compounding is 10% and that the price of the 3-year zero coupon

pls provide hand written solution

4. Suppose that 1-year zero rate with yearly compounding is 10% and that the price of the 3-year zero coupon bond is $69.31 with the face value of $100. Also, notice in the market that a 2-year forward rate beginning 1 year from today is 14% with annual compounding. List the components of the arbitrage transaction and calculate the arbitrage profits, if any, that are available to exploit a possible pricing discrepancy

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