Suppose that 100 million par values of 5-year U.K. gilts with a 4% coupon rate are purchased to create zero-coupon strips. Further suppose that the coupon payment dates are June 30 and December 31. What are the coupon strips and principal strips that can be created from these securities?

Suppose an investor buys at issuance a 10-year security issued by the Italian government. The par value of the position is 1 million, and the coupon rate is 1.5% paid semiannually. If it is held to maturity, what cash flows can the investor expect to receive?