The Funding Corporation currently issues Systemwide Bonds, Dis- count Notes, Master Notes, and Global Debt Securities. The discount notes are unsecured, joint obligations of the FFCS. As of January 31, 2001, the FFCS had $19.7 billion in discount notes outstanding. By statue, the FFCS is currently authorized to have up to $25 billion in aggregate par amount of discount notes outstanding at any one time. Maturities range from overnight to 365 days with the majority having maturities of less than 90 days. Minimum face values are $5,000 and then in $1,000 increments. All discount notes have cash settlement.   Interest at Maturity Securities The FFCS also issues short-term securities with maturities less than one year that are issued at par and pay interest at maturity. Exhibit 4.12 pre- sents a Bloomberg DES (Security Description) screen for an interest at maturity security that looks much like the CDs discussed in Chapter 6.     This security was issued by the FFCS on August 1, 2001 and matured on November 1, 2001. Note that unlike most of securities discussed in this book, the day count convention is 30/360. On the issuance date August 1, 2001, the yield on this security was 3.52% as can be seen from the upper left-hand side of the screen. Accordingly, the interest at maturity is determined by multiplying the face value, the yield at issuance, and the fraction of a year using a 30/ 360 day count convention. With the 30/360 day count, all months are assumed to have 30 days and all years are assumed to have 360 days. There are 90 days between August 1, 2001 and November 1, 2001 using a 30/360 day count convention.5 The interest at maturity is computed as follows assuming a $1 million face value:   $1,000,000 ´ 0.0352 ´ (90/360) = $8,800   Exhibit 4.13 presents a Bloomberg Yield Analysis (YA) screen for this security. Suppose a $1,000,000 face value is purchased with a settlement day of September 21, 2001 for the full price (i.e., flat price plus accrued interest) of $1,006,150.03 as can be seen from the "PAYMENT INVOICE" box on the right-hand side of the screen. We know the investor receives $1,008,800 at maturity, so the if buyer holds the security until maturity, she will receive the difference of $2,649.97. This calculation agrees with the "GROSS PROFIT" on the right-hand side of the screen. A yield calculation which may require some explanation is labelled "DISCOUNT EQUIVALENT" in Exhibit 4.13. This security is similar to a discount security in that the security does not pay a cash flow until matu-