2.2 You are a fixed income analyst who has been given the following information of several government and corporate bonds: Government bonds Corporate bonds Term to maturity Yield to Swap Swap Yield to Gov bond I- maturity rate spread maturity spread spread 1 2.80 2.71 3.30 0.50 23 45 2 3.00 3.25 Q 2.2.2 3.52 0.52 3.30 Q 2.2.1 3.84 0.54 3.50 3.79 3.99 0.49 Q 2.2.4 3.64 3.96 Q 2.2.3 0.51 Note: in the table above, Q 2.2.1 - Q 2.2.4 indicate the question numbers to which the figures relate. 2.2.1 Calculate the swap rate for the 3-year government bond. (1) 2.2.2 Calculate the swap spreads for the 2-year government bond. (1) Calculate the yield to maturity for the 5-year corporate bond. (1) 2.2.4 Calculate the I-spread for the 4-year corporate bond. (1) 2.2.5 Explain the impact on corporate bond prices if the government bond spread were to decrease significantly over all maturities. (2)