USING THE FOLLOWING INFORMATION AND ASSUMING COUPONS ARE PAID ANN...

107. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

107. Using the following information and assuming coupons are paid annually, the G-spread of the

Steel Co. bond is closest to:

Bond Maturity Coupon Price

Steel Co. 2 Years 5.00% 101.70

Treasury bond 2 Years 4.00% 100.50

A. 100 bps.

B. 36 bps.

C. 94 bps.