To assess arbitrage opportunities in the Treasury bond market using a replication strategy, compute the cost of a 1-year Treasury bond with a 6% semi-annual coupon. This analysis involves comparing the bond's cash flows with those of other bond combinations. Given data includes the current value of a 1-year zero-coupon bond at USD 98 and a 1-year bond with an 8% semi-annual coupon valued at USD 103.