Bubba buys municipal bonds with a $100,000 principal amount at 89 on margin. His account has no cash or securities. What is his minimum required deposit?
A)$5,080
B)$13,350
C)$22,500
D)$50,000

Question

Quizplus · Accepted Answer

$13,350. Munis are not subject to Reg T. The NYSE maintenance requirement on munis is the greater of 15% of the market value or 7% of the principal amount.

Bubba Buys Municipal Bonds with a $100,000 Principal Amount at 89