Problem $9$

Following are the one$-$year forward rates stated on the basis of annual compounding:

a$.$ Calculate the implied $4-$year spot rate.

b$.$ Calculate the price of a $3-$year bond with a par value of $100$ paying a $6\mathrm{.}80\%$ coupon.

c$.$ What is the yield to maturity of this bond $($using the answer to $($b$)?$

Problem $10$

You are given the following information about a government bond and a corporate bond:

Both bonds make annual coupon payments. Calculate the G$-$spread of the corporate bond in

basis points $($bps$).$