1. A 90 day T-Bill price is now 9,000. Calculate a discount rate, a bond equivalent yield (BEY), and a effective annual Yield.

2. Suppose your Tax bracket is 28%. if a fund manager offer you two investment options : 6% taxable return and 4.5% tax-free yield ( i.e. after-tax yield). which option you like to take ? why ?

3. Three months ago, you created margin account and bought 500 Amazon stocks on margin when the stock prize was $200. the initial margin requires 50% of total market value. the required maintenance margin is 35%. the call loan rate is fixed rate of 7% per year. today, you have just sold 500 stocks at $250 per each. What is the total rate of return on your investment ?

4. you are a short-selling investor. you shorted 1000 shares of RBS at $50 per share following the below margin rules.

. 50% intial margin

. 30% maintenance margin

Today stock price is at $55 per share.

A... What is Margin % today ?

B... Do you think a broker gives a margin call today ? why or why not ?

C.. WHat is the price per share when you get a margin call.