(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?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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  1. (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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