The Following Information Relates to Question 42 Both Bonds Pay Interest Annually

question 17

Multiple Choice

The following information relates to Question 42
$\begin{array} { l c c r } \text { Bond } & \text { Coupon Rate } & \text { Time-to-Maturity } & \text { Price } \\\hline \text { UK Government Benchmark Bond } & 2 \% & 3 \text { years } & 100.25 \\\text { UK Corporate Bond } & 5 \% & 3 \text { years } & 100.65 \\\hline\end{array}$
both bonds pay interest annually. The current three-year EuR interest rate swap benchmark is 2.12%.
-The G-spread in basis points (bps) on the uK corporate bond is closest to:

• A) 264 bps.
• B) 285 bps.
• C) 300 bps.

---

Definitions:

Normally Closed

Refers to a switch or relay that is in a closed (conducting) state when not energized.

Contact Configurations

The arrangement and specification of contacts within electrical devices, defining their operational functionalities.

Contactor

An electrically controlled switch used for switching an electrical power circuit, commonly used in motor and lighting applications.

Energized

A term used to describe when an electrical component or circuit has voltage applied and is functioning or ready to function.