1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask.
ID: 2659048 • Letter: 1
Question
1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask. If the bill has a $13,300 face value an investor could buy this bill for
A)$13,170.10
B)$13,235.96
C)$13,670.10
D)$13,175.96
2.An investor buys a 240 day T-bill at a bank discount quote of 5.42. The investor's actual annual rate of return on this investment was ______.
A)23.71%
B)5.70%
C)15.70%
D)18.90%
3. An investor purchases one municipal and one corporate bond that pay rates of return of 6.2% and 1.2% respectively. If the investor is in the 20.17% tax bracket, his after tax rates of return on the municipal and corporate bonds would be respectively
A)0.252 and 0.012
B)0.252 and 0.214
C)0.062 and 0.010
D)0.052 and 0.010
4. A stock quote indicates a stock price of $42 and a dividend yield of 3%. The latest quarterly dividend received by stock investors must have been ______ per share.
A)$0.32
B)$2.00
C)$1.80
D)$0.75
Explanation / Answer
1.D)$13,175.96
2.B)5.70%
3.C)0.062 and 0.010
4.A)$0.32
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