Is the Following an Arbitrage Opportunity? a Bond That Cost

question 3

Essay

Is the following an arbitrage opportunity? A bond that cost nothing but will payoff zero with certainty in the future.

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Definitions:

Secure

The condition of being protected from or not exposed to danger, risk, or anxiety.

Difficult Child

A term reflecting a child's temperament that is characterized by irregular bodily functions, withdrawal from new situations, and a tendency to react negatively and intensely.

Slow-To-Warm-Up

A temperament where individuals are cautious, shy, and introverted at first but become more social and comfortable over time.

Regular

Conforming to a standard; usual, typical, or expected in nature or occurrence.