What are the special tax features of (a) Treasury securities, (b) Agency issues, and (c) Municipal bonds?
Answer to relevant QuestionsDescribe an asset-backed security (ABS) and identify some of the different forms of collateral used with these issues. Briefly note how an ABS differs from an MBS. What What is the difference between conversion parity and conversion value? How would you describe the payback period on a convertible? What is the investment value of a convertible, and what does it reveal? What are bond ratings, and how can they affect investor returns? What are split ratings? An 8%, 10-year bond is callable in 2 years at a call price of $1,080. The bond is currently priced in the market at $888.89. What is the issue’s current yield? An 8% convertible bond carries a par value of $1,000 and a conversion ratio of 20. Assume that an investor has $5,000 to invest and that the convertible sells at a price of $1,000 (which includes a 25% conversion premium). ...
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