show your work:

Table 6.0 (for question 6). Bond Coupon Rate Tenor Price

UK Government Benchmark Bond 3% 10 years 77.68

UK Corporate Bond 5% 10 years 73.94 6.

If the two bonds in Table 6.0 pay interest semiannually, the G-spread on the UK corporate bond is closest to:

a) 151 bps

b) 301 bps

c) 176 bps

d) not enough information.

Table 2.0 (for question 2).

Bond Price Coupon Rate Time-to-Maturity A 100.00 6% 2 years B 101.886 5% 2 years C 97.327 5% 3 years

2. Of the three bonds in Table 2.0, which bond will likely experience the largest percent change in price if the market discount rates for all three bonds increase by 100 basis points?

a) Bond A

b) Bond B

c) Bond C

d) not enough information.