On 12/31/17, public debt with a nominal value of 1,000 is issued at par with a yield

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Question:

On 12/31/17, public debt with a nominal value of €1,000 is issued at par with a yield of 3.5% and semi-annual interest payments.

The expiration date is 12/31/22 (5 years). a) If on 3/31/19 the security could be segregated into strips, how many coupon strips (IO) would be generated and what would be the nominal amount of each of them? (1.5 points)

b) Assuming that the interest rates on that date (3/31/19) were at 2.75%, at what price could the principal strip (PO) be acquired? (1.5 points) Note: calculation base 360 days (ie each month has 30 days)