A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?

A) $3,047,439

B) $3,045.678

C) $3,062,877

D) $3,063,750

E) $3,127,500

.

A 50-day maturity money market security has a bond equivalent yield of 3.60 percent. The security's EAR is

A) 3.69 percent.

B) 3.61 percent.

C) 3.55 percent.

D) 3.87 percent.

E) 3.66 percent.

.

Interest income from Treasury securities is ________, and interest income from municipal bonds is always ________.

A) exempt from federal taxes; exempt from all taxes

B) taxable at the state level only; exempt from state taxes only

C) taxable at federal level only; exempt from federal taxes

D) taxable at the state level; taxed at the federal level

E) totally tax exempt; exempt from state taxes

.

A T-bond with a $1,000 par is quoted at a bid of 105-7 and an ask of 105-9. If you sell the bond, you will receive

A) $1,052.81.

B) $1,052.19.

C) $1,057.22.

D) $1,059.22.

E) None of these choices are correct.