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please answer question i, ii and iii thank you very much for your help ...

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Finance

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please answer question i, ii and iii

thank you very much for your help

b. Clean Prices, coupon rates (assumed paid annually) and maturities of three comparable Treasury bonds, as of May 15, 2021, are listed below: Price ($) 102 Bond 6%; 05/15/2022 6%; 05/15/2023 10%; 05/15/2024 100 105 i. Calculate all three spot rates implicit in these prices. [9 Marks] ii. What is the expected one-year spot rate after one year assuming that the expectations theory of term structure is correct? [3 Marks] iii. Based on the spot rates you have calculated, is there an arbitrage opportunity if a 12% coupon (paid annually) bond maturing in 3 years is priced at $115? Explain. [5 Marks]

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