1. Assume a municipal bond has 19 years until maturity and sells for $5,465. It has a coupon rate of 5.00 percent and it can be called in 9 years. What is the yield to call if the call price is 110 percent of par?
2. You own a bond with a coupon rate of 6.8 percent and a yield to call of 7.7 percent. The bond currently sells for $1,094. If the bond is callable in five years, what is the call premium of the bond?
3. A Treasury bill has a bid yield of 1.89 and an ask yield of 1.85. The bill matures in 94 days. Assume a face value of $1,000. At what price could you sell the treasury bill? What is the dollar spread for this bill?