Today is time t. Two zero coupon bonds both have face value of 100 dollars, which means both bonds are expected to pay you a value of $100 at Maturity (time T). Bond A is liquid and is often traded by average institutional investors at zero transaction costs. B and indirect trading cost is $5 per trade (either buy or sell). Suppose an average-sized institutional trader who wants own the two bonds will make at least three trades in eith ond B isilliquid. Its total direct t at t then sell it and buy it back again at some time between t and T). Interest rate for discounting fiuture bond price is zero for both bonds. In other words, everyone in this market is not risk averse