Suppose on 03/15/2023, you are expecting that the yield curve will steepen. You want to enter into a spread trade using $100 million face value of 2-year bond and a corresponding amount of 10-year bond. The quotes related to these bonds are below. Note that quoted bid and ask prices are clean prices. Take one year as 360 days. Also note that you buy at the ask and sell at the bid.

Maturity Coupon (%) Bid Asked Chg

3/15/2025 1.75 93.304 93.310 -0.0024

3/15/2034 3.5 96.026 96.036 -0.02

Note that above quotes are clean prices. Find the full prices of each bond.

Find yield to maturity of each bond using full ask prices (ask yield)

Find the PVBP of each bond using ask prices and ask yields.

How much will you buy or sell of 10-year bond on 3/15/2023 for the spread trade? Will you buy or sell $100 million face value of 2-year bond? Why did you buy/sell of each bond? (Use full prices)