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B A) What is the price of MITB that has a face value of RM5,000,000.00 and sold at a discount rate of 4.8 percent, assuming
B A) What is the price of MITB that has a face value of RM5,000,000.00 and sold at a discount rate of 4.8 percent, assuming that the number of days to maturity is 30 days? B) Suppose an IAB with a face value of RM3,000,000.00 is sold at a discount rate of 5 percent and has 42 days remaining to maturity. What is the price for this IAB? C) Suppose that the interest rate on a taxable corporate bond is 9% and that the marginal tax is 28%. Suppose a tax-free municipal bond with a rate of 6.75% was available. Which security would you choose? D) Suppose you can invest in a money market security that matures in 75 days and offers a 3% nominal annual interest rate (i.e., bond equivalent yield). What is the effective annual interest return on this security? E) If the Malaysian price level rises by 6% relative to the price level in the United States, what does the theory of Purchasing Power Parity predict will happen to the value of the Malaysian ringgit in term of Dollars
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