(A) a Bank-backed municipal bond has yield of 10% with maturity of 18 years. Calculate its Yield ratio with this given table Name Maturity Yield Insured Municipal Bond 10 Years 7% Government Sukuk 12 years 6% Government Bond Series-19 15 Years 7% Government Bond Series-20 18 years 8% Government Bond Series-21 20 Years 9% (B) If the municipal government issues another bond with tax-backed scheme, what is the different of this tax-backed and bank-backed bond? (A) Suppose that the price of Malaysia T-Bills with 90 days to maturity and a $1 million face value is $960,000. What is the yield on a bank discount basis? (B) If the Cambodia treasury bill has 15% yield with 90 days to maturity, which T-Bill has better risk-reward? Why? (C) If the Vietnam T-Bill has 10% yield with 30 days to maturity, which T-Bill has better risk-reward? Why?
(A) a Bank-backed municipal bond has yield of 10% with maturity of 18 years. Calculate its Yield ratio with this given table Name Maturity Yield Insured Municipal Bond 10 Years 7% Government Sukuk 12 years 6% Government Bond Series-19 15 Years 7% Government Bond Series-20 18 years 8% Government Bond Series-21 20 Years 9% (B) If the municipal government issues another bond with tax-backed scheme, what is the different of this tax-backed and bank-backed bond? (A) Suppose that the price of Malaysia T-Bills with 90 days to maturity and a $1 million face value is $960,000. What is the yield on a bank discount basis? (B) If the Cambodia treasury bill has 15% yield with 90 days to maturity, which T-Bill has better risk-reward? Why? (C) If the Vietnam T-Bill has 10% yield with 30 days to maturity, which T-Bill has better risk-reward? Why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- (A) a Bank-backed municipal bond has yield of 10% with maturity of 18 years. Calculate its Yield ratio with this given table
|
Name |
Maturity |
Yield |
|
Insured Municipal Bond |
10 Years |
7% |
|
Government Sukuk |
12 years |
6% |
|
Government Bond Series-19 |
15 Years |
7% |
|
Government Bond Series-20 |
18 years |
8% |
|
Government Bond Series-21 |
20 Years |
9% |
(B) If the municipal government issues another bond with tax-backed scheme, what is the different of this tax-backed and bank-backed bond?
(A) Suppose that the price of Malaysia T-Bills with 90 days to maturity and a $1 million face value is $960,000. What is the yield on a bank discount basis?
(B) If the Cambodia treasury bill has 15% yield with 90 days to maturity, which T-Bill has better risk-reward? Why?
(C) If the Vietnam T-Bill has 10% yield with 30 days to maturity, which T-Bill has better risk-reward? Why?
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