January 31, 1989
TO: UNIT INVESTMENT TRUST MEMBERS NO. 11-89
SEC RULES COMMITTEE NO. 9-89
RE: YIELD QUOTATION ON MARKET DISCOUNT MUNICIPAL BONDS
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As we previously informed you, the Institute has filed a
letter with the SEC Divisions of Investment Management and Market
Regulation, requesting standardization in the yield formula for
mutual funds investing in market discount municipal bonds and for
market discount municipal bonds sold directly through dealers.
(See Institute Memorandum to SEC Rules Committee No. 7-89, Unit
Investment Trust Members No. 4-89 and Yield Implementation Task
Force, dated January 18, 1989.)
Attached is a copy of the response of the Division of
Investment Management, in which the Director of the Division
indicates that the staff will consider the request in the context
of certain technical amendments to the advertising rules, but
that it is likely to be some time before the request is
addressed. Also attached is a copy of the response of the
Division of Market Regulation, in which the Special Assistant to
the Director states that the MSRB will review the request.
We will keep you informed of developments.
Craig S. Tyle
Assistant General Counsel
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