Problem H: (a) The one year zero rate is 5% and the three year zero rate is 5.5%. You are offered a 13 forward rate of 5.6%. How do you arbitrage it? (b) In a more realistic setting, the bid-ask spread on one year loans/deposits is 5% and 5.05%, and the bid-ask spread on three year loans/deposits is 5.5% and 5.56%. You are offered a bid-ask 13 forward rate spread of 5.58 and 5.62. How do you arbitrage it? Problem H: (a) The one year zero rate is 5% and the three year zero rate is 5.5%. You are offered a 13 forward rate of 5.6%. How do you arbitrage it? (b) In a more realistic setting, the bid-ask spread on one year loans/deposits is 5% and 5.05%, and the bid-ask spread on three year loans/deposits is 5.5% and 5.56%. You are offered a bid-ask 13 forward rate spread of 5.58 and 5.62. How do you arbitrage it