Practical Application: Consider the following corporate and muni bond info from Monday 1/30/2020 (Settlement is T+3 i.e. 2/04/2020). All the bonds are semiannual. Rating Cusip Issuer A2/A 24422ETC3 Deere John Cap Corp Mtns Be A2/A- 747525AU7 Qualcomm Inc Make Whole Call 02/2027 A3/A- 20825UAC8 Conoco Fdg Co Make Whole Call 10/2031 A3/BBB+ 38141EW70 Goldman Sachs Inc Conditional Puts Baa3/BBB- 55616XAM9 Macys Retail Hldgs Inc Baa1/BBB+ 92343VCV4 Verizon Comm Make Whale Call Exp 01/2006 Baa1/BBB+ 500472AC9 Koninklijke Philips NV Make Whole Call Baa2/BBB 959802AM1 Western Un Co Make Whole A3/A- 20030NBEO Comcast Corp Make Whole Call Baa2/BBB 277432AP5 Eastman Chem Co Baa1/BBB+ 754730AF6 Raymond James Financial Coup 3.4 3.25 7.25 5.5 4.5 4.272 6.875 6.2 4.65 4.65 4.95 Maturity 9/11/2025 5/20/2027 10/15/2031 6/15/2033 12/15/2034 1/15/2036 3/11/2038 6/21/2040 7/15/2042 10/15/2044 7/15/2046 Yield 1.841 2.131 2.706 3.44 4.595 2.895 3.138 4.923 3.098 3.907 3.557 Price 108.268 107.522 145.305 122.045 98.981 117.492 151.321 116.308 124.973 111.699 123.748 Mdy's/S&P Aa3/AA- Coupon Maturity 4 6/15/2029 Price 115.87 YTW 1.387 YTM 2.123 CallDate 6/15/2026 Aa1/AA+ 4 8/1/2033 115.79 1.743 2.605 8/1/2027 CUSIP Issue 676306DQ3 Ogden City UT Swr & Wtr Rev Callable 06/26@100 915183YSO University Utah Univ Revs Callable 08/27@100 917547ZH7 Utah St Bldg Ownership Auth Lease Rev Callable 05/25@100 - OID 917567DX4 Utah Tran Auth Sales Tax Rev Callable 06/28@100-Bam Insured Aa1/AA+ 3 5/15/2036 105.037 1.991 2.618 5/15/2025 A1/A+ 5 12/15/2040 123.438 1.95 3.419 6/15/2028 EXERCISE #10: If Western Union 2040 gets downgraded to BB+ and the yield changes by 1%, then for Western Union 2040: New ytm = %, New approx. Price = [Assume exactly 20 1/2 years to maturity.] EXERCISE #11: Compute the taxable-equivalent yield to maturity on the UtahTrAuth 2040 bond for a Utah resident paying a 25% federal and a 7% state income tax (add). Tax-eq yield = ..% EXERCISE #12: Compute the approx yield to call on the Utah Tr Auth 2040. Assume 8 1/2 years to call. YTC = ..%