1. What are the primary differences between municipal bonds and U.S. government bonds? Which is likely to have a higher yield? What factors cause the differences in yields on U.S. government bonds?
2. What is commercial paper? Who are the major issuers of it? How is it distributed?
3. You find a bond with 3 years until maturity that has a coupon rate of 7.5 percent and a yield to maturity of 5.9 percent. What is the Macaulay duration?