Use the following information to answer questions 11 14 Please enter percentages as whole numbers, e g enter 7 1181 as 7 1181 not 0 07118 Practical Application Consider the following corporate and muni bond info from Thursday 2 11 2021 (Settlement is T 2 i e 2 15 2021 ) All the bonds are semiannual Rating Cusip Issuer Coup Maturity Yield Price A2 A 24422ETC3 Deere John Cap Corp Mtns Be 3 4 9 11 2025 0 723 112 009 A2 A 747525AU7 Qualcomm Inc Make Whole 3 25 5 20 2027 1 119 112 850 A3 A 20825UAC8 Conoco Fdg Co Make Whole 7 25 10 15 2031 2 880 139 878 A2 BBB 38141EW70 Goldman Sachs Inc Cond Puts 5 5 6 15 2033 3 293 122 337 B1 B 55616XAM9 Macys Retail Hldgs Inc 4 5 12 15 2034 6 078 85 375 Baa1 BBB 92343VCQ5 Verizon Comm Make Whole 4 4 11 01 2034 2 487 122 100 Baa1 A 209111EU3 Consolid Edison NY M Whole 6 750 04 01 2038 2 887 151 901 Baa2 BBB 959802AM1 Western Un Co Make Whole 6 2 6 21 2040 4 262 125 350 Aa2 AA 822582AY8 Shell Intl Fin Bv Make Whole 4 550 08 12 2043 2 986 125 477 Baa3 BBB 277432AP5 Eastman Chem Co 4 65 10 15 2044 3 424 119 770 Baa3 BBB 690742AG6 Owens Corning Make Whole 4 300 07 15 2047 3 176 120 000 Mdys S P CUSIP Issue Coupon Maturity Price YTW YTM CallDate Aaa AAA 890346ML0 Tooele Cnty Utah Sch Dist Callable 12 25 100 5 000 06 01 2026 122 341 0 300 0 693 12 1 2025 A1 AA 917567DR7 Utah Tran Auth Sales Tax Callable 06 28 OID Bam Insured 3 375 12 15 2034 114 858 1 248 2 129 6 15 2028 Aa1 AA 917547ZK0 Utah St Bldg Ownership Auth Callable 05 25 3 250 05 15 2038 107 815 1 350 2 681 5 25 2025 A2 A 795576GS0 Salt Lake City Utah Arpt Rev Callable 07 27 Sinking Fund 07 43 5 07 01 2047 121 301 1 485 3 725 7 01 2027 1 If Western Union 2040 gets downgraded to BB and the yield changes by 1 , then for Western Union 2040 New ytm 2 If Western Union 2040 gets downgraded to BB and the yield changes by 1 , then for Western Union 2040 New approx QPrice Assume exactly 19 1 2 years to maturity 3 Compute the taxable equivalent yield to maturity on the UtahStBldg 2038 bond for a Utah resident paying a 25 federal and a 7 state income tax (add) Tax eq yield 4 Compute the approx yield to call on the Salt Lake Arpt 2047 Assume 6 1 2 years to call YTC 5 Compute the Mod Duration of the EastmanChem 2044 bond by blipping 23 years to maturity That is, compute three prices at the current ytm, and by changing the ytm by 0 05 up and down Then follow the ModD definition Rescale correctly Mod D y (P 5 P 5 ) P (y 5 y 5 )

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Use the following information to answer questions 11-14. Please enter percentages as whole numbers, e.g. enter 7.1181% as 7.1181 not 0.07118. Practical Application: Consider the

Use the following information to answer questions 11-14. Please enter percentages as whole numbers, e.g. enter 7.1181% as 7.1181 not 0.07118.

Practical Application: Consider the following corporate and muni bond info from Thursday 2/11/2021 (Settlement is T+2 i.e. 2/15/2021). All the bonds are semiannual.

Rating	Cusip	Issuer	Coup	Maturity	Yield	Price
A2/A	24422ETC3	Deere John Cap Corp Mtns Be	3.4	9/11/2025	0.723	112.009
A2/A-	747525AU7	Qualcomm Inc Make Whole	3.25	5/20/2027	1.119	112.850
A3/A-	20825UAC8	Conoco Fdg Co Make Whole	7.25	10/15/2031	2.880	139.878
A2/BBB+	38141EW70	Goldman Sachs Inc Cond Puts	5.5	6/15/2033	3.293	122.337
B1/B	55616XAM9	Macys Retail Hldgs Inc	4.5	12/15/2034	6.078	85.375
Baa1/BBB+	92343VCQ5	Verizon Comm Make Whole	4.4	11/01/2034	2.487	122.100
Baa1/A-	209111EU3	Consolid Edison NY M Whole	6.750	04/01/2038	2.887	151.901
Baa2/BBB	959802AM1	Western Un Co Make Whole	6.2	6/21/2040	4.262	125.350
Aa2/AA-	822582AY8	Shell Intl Fin Bv Make Whole	4.550	08/12/2043	2.986	125.477
Baa3/BBB-	277432AP5	Eastman Chem Co	4.65	10/15/2044	3.424	119.770
Baa3/BBB	690742AG6	Owens Corning Make Whole	4.300	07/15/2047	3.176	120.000

Mdys/S&P	CUSIP	Issue	Coupon	Maturity	Price	YTW	YTM	CallDate
Aaa/AAA	890346ML0	Tooele Cnty Utah Sch Dist Callable 12/25@100	5.000	06/01/2026	122.341	0.300	0.693	12/1/2025
A1/AA	917567DR7	Utah Tran Auth Sales Tax Callable 06/28-OID-Bam Insured	3.375	12/15/2034	114.858	1.248	2.129	6/15/2028
Aa1/AA+	917547ZK0	Utah St Bldg Ownership Auth Callable 05/25	3.250	05/15/2038	107.815	1.350	2.681	5/25/2025
A2/A	795576GS0	Salt Lake City Utah Arpt Rev Callable 07/27 - Sinking Fund 07/43	5	07/01/2047	121.301	1.485	3.725	7/01/2027

1. If Western Union 2040 gets downgraded to BB+ and the yield changes by 1%, then for Western Union 2040:

New ytm = ..%

2. If Western Union 2040 gets downgraded to BB+ and the yield changes by 1%, then for Western Union 2040:

New approx. QPrice = . [Assume exactly 19 1/2 years to maturity.]

3. Compute the taxable-equivalent yield to maturity on the UtahStBldg 2038 bond for a Utah resident paying a 25% federal and a 7% state income tax (add).

Tax-eq yield = %

4. Compute the approx yield to call on the Salt Lake Arpt 2047. Assume 6 1/2 years to call.

YTC = ..%

5. Compute the Mod Duration of the EastmanChem 2044 bond by blipping. [23 years to maturity] That is, compute three prices: at the current ytm, and by changing the ytm by 0.05% up and down. Then follow the ModD definition. Rescale correctly.

Mod D = - % / y = - (P₊₅ P_-5)/P / (y₊₅-y_-5)