a)Calculate the yield to maturity of a bond with a market price of £468 and a par value of £500 paying an 8% coupon every six months with two years to maturity. The coupon is next payable in 6-months.

b)Bond A is an Exchequer stock 5% paying an annual coupon with a par value of £100 and two years to maturity. Bond B is an Exchequer stock 9% paying an annual coupon with a par value of £100 and two years to maturity.
The spot rate in the first year is 4% and in the second year 7%.
Calculate the market price of the two bonds.