Jad: 2d-wimalnl ack x 1s5 3.7 "x_36 180 9690 1953.11 33.63 Prineloodoel-h9) x IS5l.67 FIN 310: Basic Investing Problem Set #2 1) The investment manager of a corporate pension fund has purchased a U.S. Treasury bill with 180 days to maturity at a price of $9,600 per $10,000 face value. The manager has computed the bank discount yield at 8%. Calculate the bond equivalent yield for the Treasury bill. Show your calculations. (Assume this is not a leap year.) 2) A Treasury bill has a bank discount yield of 6.81% based on the ask price and 6.90% based on the bid price. The maturity of the bill is 60 days. a) Find the bid and ask prices of the bill. b) Calculate the bond equivalent yield and the effective yield based on the ask price. 3) Consider the following two T-bills: 1) 3-month bill selling at $9,764 2) 6-month bill selling at $9,539. (atos-7164 60 a) Which bill offers a higher effective yield? 3-boufh ll (2) (0a50-7539 X b) Calculate the bank discount yield of each bill. 1.818 4) An investor is in a 28% tax bracket. If corporate bonds offer 9% yields , what must municipals offer for the investor to prefer them to corporate bonds? nicipal bonds currer