1- Please use this data for this and the next question.

You can purchase a T-Bill that is 95 days from maturity fo $9,965. The T-Bill has a face value of $10,000.

A- Calculate it's quoted yield. This is the same as the discount rate.

B- Using the same data, please calculate the bond equivalent yield.

2- A- If the overnight Fed Funds rate is quoted at 0.75% (or 75 basis points), what is the bond equivalent yield? Please express in %.

B- If the overnight Fed Funds rate is quoted at 1.00% (or 100 basis points), what is the bond equivalent yield? Please express in %.

3- You can buy commercial paper of a major US corporation for $498k. The paper has face value of $500k and is 45 days from maturity.

A- Calculate the discount yield on the CP.

B- Calculate the bond equivalent yield on the CP.

4- Please use this information for this and the following question. On October 5, 2019, you purchase a $10,000 T-note that matures on August 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on October 6, 2019). The coupon rate on the T-note is 4.375% and the current price quoted on the bond is 105.250%. The last coupon occurred on May 15, 2019 (144 days before settlement), and the next coupon payment will be paid on November 15, 2019 (40 days from settlement).

A- Calculate the accrued interest due to the seller from the buyer at settlement.

B- Using that same information, what is the dirty price in $s of the transaction?

5- You can invest in taxable bonds that are paying a yield of 9.5% or a municipal bond paying a yield of 7.75%. If your marginal tax rate is 21%, which bond should you buy?

6- A $1,000 face value corporate bond with a 6.5% coupon (paid semi-annually) has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.2%. the firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. the new appropriate discount rate is 8.5%. What is the change in the bond's price in % terms? Include the appropriate sign for the price change.

7- You plan to purchase an $80,000 house using a 15-year mortgage obtained from your local bank. the mortgage rate offered to you is 8%. You will make a downpayment of 20% of the purchase price.

A- Calculate your monthly payments on this mortgage.

B- Calculate the amount of interest paid in the 127th payment.

C- Calculate the amount of principal paid in the 159th payment.

D- Calculate the amount of interest paid over the life of this mortgage.