In the May 29, 1992, Weekly Market Update published by Goldman, Sachs & Co., the fol- lowing information was reported in an exhibit for high-grade, tax-exempt securities as of the close of business Thursday, May 28, 1992:

a. What is meant by a tax-exempt security?

b. What is meant by high-grade issue?

c. Why is the yield on a tax-exempt security less than the yield on a Treasury security of the same maturity?

d. What is the equivalent taxable yield?

e. Also reported in the same issue of the Goldman, Sachs report is information on intramarket yield spreads. What are these?AppendixLO1 

Transcribed Image Text:

Yield (%) as a Maturity Yield (years) Percentage of (%) Treasury Yield 1 3.20 76.5 3 4.65 80.4 5 5.10 76.4 23 10 5.80 78.7 30 6.50 82.5