Question 9. [19 points) PART A. Consider the following spot rates on 1-year zero-coupon bonds: Year Spot Rates (or Yields to Maturity) 1 2 3 8.0% 8.5% 9.0% 9.5% 4 a. What is the equilibrium price of a 4-year, 9% coupon bond paying a principal of $100 at maturity and coupons annually? Question 9. [19 points] PART A. Consider the following spot rates on 1-year zero-coupon bonds: Year Spot Rates (or Yields to Maturity) 1 2 3 4 8.0% 8.5% 9.0% 9.5% a. What is the equilibrium price of a 4-year, 9% coupon bond paying a principal of $100 at maturity and coupons annually? b. If the market prices the 4-year bond such that it yields 10%, what is the bond's market price? c. What would arbitrageurs do if the market prices exceeded the equilibrium price? What impact would their actions have on market prices