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The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Maturity Date 07/04/2022 20/08/2027 07/06/2035 Gilts Prices Close of Business 7th January 2018 Coupon Rate Coupon Payment Dates 3.75% 7th April, 7th October 1.70% 20th February, 20th August 4.00% 7th June, 7th December Yield to Maturity 0.784735 1.394042 1.868424 The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. a) Work out the time periods to maturity, the periodic coupons and the periodic yields for each of the three bonds. Use the information to calculate the clean price of each bond. Your mathematical workings should be clearly outlined in your written presentation. (40 marks) b) Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018. Your mathematical workings should be clearly outlined in your written presentation. (25 marks) The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Maturity Date 07/04/2022 20/08/2027 07/06/2035 Gilts Prices Close of Business 7th January 2018 Coupon Rate Coupon Payment Dates 3.75% 7th April, 7th October 1.70% 20th February, 20th August 4.00% 7th June, 7th December Yield to Maturity 0.784735 1.394042 1.868424 The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. a) Work out the time periods to maturity, the periodic coupons and the periodic yields for each of the three bonds. Use the information to calculate the clean price of each bond. Your mathematical workings should be clearly outlined in your written presentation. (40 marks) b) Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018. Your mathematical workings should be clearly outlined in your written presentation. (25 marks)