1. How are initial issue discount bonds currently taxed by the IRS and how does this impact the placement market for these bonds?
2. What is a futures’ contract and how does it differ from an option contract traded on the same exchange for the same underlying asset?
3. If you hold a portfolio with an average annual rate of return of 6% with a standard deviation of 10%, what is the range of returns that you can expect from this portfolio over time with 95% probability? I can not use excel for the exam, so I'm hoping to learn the solution through calculator steps.