a. What is the discount yield for a 1 million T- bill with a 136 days until maturity, that cost 996,080
b. A municipal bond with a face value of 1,000 and a coupon of 5.15% is selling for $1023.36 what is the current yield?
c. You purchase the municipal bond in b which has 15 years remaining until maturity what is the YTM?
d. Exactly one year you sell the bond after the yield has dropped by 36 basis points (.35%) what is the sale price? what was the return over the past year
e. If you were in the 40% tax bracket how much in taxes would be paid on the transaction in d? what would the corporate rate need to be to invest in the coupon bond?
f. You own a corporate bond that pays 8% coupon. Coupon is distributed on 2/1/xx and you sell it at par on 10/22/xx what is the dirty price on the sale of the security?