Assume a municipal bond has 18 years until maturity and sells for $5,6040. It has a coupon rate of 5.70 percent and it can be called in 10 years. What is the yield to call if the price is 110 percent of par?
A taxable corporate issue yields 6.5 percent. For an investor in a 35 percent tax bracket, what is the equivalent after tax yield?
A taxable issue yields 6.4 percent, and a similar municipal issue yeilds 4.7 percent. What is the critical marginal tax rate?
A Treasury bill has a bid yield of 2.75 and an ask yield of 2.73. The bill matures in 152 days. What is the least you could pay to acquire a bill?
At what price could you sell the Treasury bill referred to in the previous question? What is the dollar spread for this bill?
A treasury issue is quoted at 102:09 bid and 102:12 ask. What is the least you could pay to acquire a bond?