G spread

Canadian government benchmark bond

Coupon rate: 3.0%
Price 101
years to maturity: 2

Canadian government bond

Coupon rate: 5.0%
Price 102
Years to maturity: 2

Assuming annual compounding, the g-spread is closest to:

A. 146bps
B. 200BPS
C. 248BPS

Can i know why the answer is A. the answer explaination makes me confuse.

Calculate the YTM for each bond and take the difference. This is just plug 'n chug on your calculator.

YTM of benchmark is 2.484%, YTM of government bond is 3.95%. The difference is 1.46%.