Use the following information. All bonds are issued by US Treasury and will pay coupons annually.

Bond	A	B	C	D	E
Issuer	Treasury	Treasury	Treasury	Treasury	Treasury
Face Value	100	100	100	100	100
Coupon Rate	3.0%	3.0%	3.0%	3.0%	3.0%
Price	100
Maturity	1	2	3	4	5

The sequence of spot rates and forward rates are shown below,

Time to Maturity	Spot (0Rn)	Forward (n-1Fn)
1	3.0000%	3.000%
2	2.9000%	2.800%
3		2.700%
4		2.600%
5		2.500%

1) An investor considers the purchase of 2-year annual zero-coupon Bond J to be issued 2 year from today with a face value of $100. The price of the Bond J is closet to:

92.903

93.903

94.903

95.903

2) An investor considers the purchase of 2-year annual 5%-coupon Bond K with a face value of $100, currently trading at a Z-spread of 50 bps. The price of the Bond K is closet to:

100.039

101.039

102.039

103.039