You purchase 150 shares of Pepsi on margin at $140 per share. Assume the initial margin is $50%. If you receive a margin call when the stock price drops to $110, what is the maintenance margin?
40%
36%
30%
46%
A tax-free municipal bond provides a yield of 4.3%. What is the equivalent taxable bond given a 35% tax bracket?
4.3%
5.4%
6.6%
2.8%
Suppose you pay $9,900 for a Treasury bill that pays $10,000 in one month. What is the effective annual rate of return for this investment?
6.2%
11.9%
12.7%
1.0%