1. Discuss the pros and cons of tax-backed and revenue municipal bonds and the advantages and disadvantages of including them in a portfolio.
2. Evaluate the most important factor in analyzing an asset-backed security transaction and analyze the use of these assets in a portfolio.
3. Rank the following bonds from the least to the greatest reinvestment risk and justify your answers.
a. A 10-year bond with a 5.25% coupon.
b. A 10-year bond with a 6.75% coupon.
c. A 15-year bond with a 6.75% coupon.
d. A 15-year bond with a zero-coupon.