Table 2.0 (for questions 2 and 3). Information regarding Bond G, sold for settlement on June 16, 2014.

Annual Coupon	5%
Coupon Payment Frequency	Semiannual
Interest Payment Dates	10 April and 10 October
Maturity Date	10 October 2016
Day-count Convention	30/360
Annual Yield-to-Maturity	4%

2. For Bond G listed in Table 2.0 what is the accrued interest per 100 of par value on the settlement date of June 16, 2014 is:

1.05	0.75
0.92	none of the above.

3. What is the full price, at settlement on June 16, 2014, of Bond G in Table 2.0?

101.90	103.84
104.11	none of the above.

4. An investor is considering the purchase of a 2-year bond with a 5% coupon rate, with interest paid annually. Assuming the following sequence of spot rate: 1 year, 3.5% and 2 year, 4%, the yield to maturity of the bond is:

3.00%	3.50%
2.89%	none of the above.

Table 5.0 (for question 5).

Bond	Coupon Rate	Tenor	Price
UK Government Benchmark Bond	3%	10 years	77.68
UK Corporate Bond	2.92%	10 years	73.94

5. If the two bonds in Table 5.0 pay interest semiannually, the G-spread on the UK corporate bond is closest to:

51 bps	301 bps
176 bps	not enough information.