A 4% annual coupon corporate bond with two years remaining to maturity has a Z-spread of 200 bps. The two-year, 2% annual payment government benchmark bond is trading at a price of 98.106. The one-year and two-year government spot rates are 2% and 3%, respectively, stated as effective annual rates. Assume all interest paid annually.

(a)Calculate the corporate bond price.

(b)Calculate the G-spread, the spread between the yields-to-maturity on the corporate bond and the government bond having the same maturity.