Stated as effective annual rates-what is the g-spread

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A 6% annual coupon corporate bond with two years remaining to maturity is trading at a price of 100.125. The two-year, 4% annual payment government benchmark bond is trading at a price of 100.750. The one and two year government spot rates are 2.10% and 3.635% respectively, stated as effective annual rates. What is the G-spread? Demonstrate the Z-spread is 234.22 bps.

Reference no: EM131844531

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