Problem 3. The risk-free long-term effective annual interest i = 3%. (a) What is the present value of the zero coupon bond whose face value is 100$ and that matures in 10 years? (b) Suppose these bonds are currently traded at $74 apiece. Describe an arbitrage scheme if you can freely borrow/lend money at the risk-free rate i. Problem 4. As in the previous problem, the risk-free long-term effective annual interest i = 3%. Suppose zero coupon bonds with face value of 100$ and unknown number n years to maturity are traded at a fair price of $81.31, i.e. at the price that coincides with the present value under i = 3%. Find the number n years to maturity