HIST 1402 Lecture Notes - Lecture 6: Tax Rate, United States Treasury Security, Municipal Bond
Document Summary
Assume an investor bought a six-month t-bill with a ,000 par value for ,000 and sold it 90 days later for ,100. What would be your discount yield % and your annualized bond equivalent yield % on the purchase of a 182-day. The price of ,000 face value commercial paper is ,930. The yield on a corporate bond is 8%, and it is currently selling at par. A par value municipal bond with a coupon rate of 6. 5% is available. A seventeen-year, ,000 par bond has 9% annual coupon and has a current yield of 7. 5%. The bond can be called in 6 years at a call price of . Suppose a portfolio manager purchases $ 1 million of par value of a treasury inflation protected security (tips). The coupon rate is 2. 4%: assume that the end of the first six months the cpi is 2. 6% (annual rate).
