An analyst gathers the following information:

Both bonds pay coupon interest semiannually. The one$-$year and two$-$year spot

rates are $3\mathrm{.}50\%$ and $5\mathrm{.}09\%,$ respectively. All rates are stated on a semiannual

basis. The G$-$spread, measured in basis points $($bps$),$ between the two$-$year

corporate bond and the two$-$year government bond is closest to:

A

$107\mathrm{.}9$ bps$.$

B

$108\mathrm{.}7$ bps$.$

C

$159\mathrm{.}0$ bps$.$