d) Bonds C and D both pay annual coupons, both have face values of £100 and both have two years to maturity. Bond C has a coupon rate of 5% and bond D a coupon rate of 2%. Bond C's price is £101.93 and bond D's price is £96.25. Use absence of arbitrage to infer the price of a zero coupon bond with 1 year to maturity and face value £100. (5 marks)