1. A 182-day $14 million negotiable CD has a 5.00% annual rate quote. It is currently selling at par as market rates are 5%. a. What is the bond equivalent yield? b. What is the effective annual yield? c. How much will the NCD holder receive at maturity? d. Now assume thirty days have passed. Market rates have risen to 5.50%. 1) You desire to sell the negotiable CD. How much should you receive for the NCD if you sell it? 2) What is the new BEY? 3) What is the new EAR?

2. Today is April 1, 2017. A T-bond quote is given below. This T-bond has a $1,000 par value and was originally issued on January 1, 2010. Interest is paid on January 1 and July 1.

U.S. Treasury Bond
Maturity	Coupon	Bid	Asked	Change	Ask Yield
Jan. 1, 2030	5.125	101:06:00	101:24:00	0.001	?????

Assume the following when answering questions a c: In figuring days to maturity, etc. assume settlement is todays date (April 1, 2017), a 365 day year (i.e. ignore leap years), and there are 30 days in April, June, Sept., Nov., 28 days in Feb., and all the rest have 31 days.

a. What is the dollar amount of the dealer's profit on $1,000,000 face value of T-bonds (i.e., what is the dealer's bid-ask spread on $1,000,000)? b. What is the Ask Yield on the T-bond? c. What is the dirty price of a $100,000 face amount of this T-bond?

3. Today is Jan. 1, 2018. Below is a Treasury Strip quote:

Treasury Bond, Stripped Principal
Maturity	Bid	Asked	Change	Ask Yield
2025 Jan 1	91.052	?????	-0.125	1.125

What is the Asked Quote?