You consider buying a 5-year fixed coupon par corporate bond in a package with the 5- year interest rate swap, where you basically swap the fixed coupons into floating coupons. The bond pays coupon semiannually at 2.5% coupon rate, and the day count convention is 30/360.

You think the bond offers a good value if the so called annualized Z-spread is at least 50 basis points. So, find the Z-spread, defined as the fixed spread that would need to be added to the implied zero-coupon yields (derived from the LIBOR-swap rates) such that the present value of a bonds cash flows is equal to its current market price.

Should you buy the bond?