Question
A) Today is February 15, 2008 Type. Issue Date. Price. Coupon Rate. Maturity Date. YTM. Current Yield. Rating. Note Feb 2003. ? 6.75% 2-15-2013. 5.532%.
A)
Today is February 15, 2008
Type. Issue Date. Price. Coupon Rate. Maturity Date. YTM. Current Yield. Rating.
Note Feb 2003. ? 6.75% 2-15-2013. 5.532%. ------- AAA
What is the price in dollars of the February 2003 Treasury note with semiannual payment if its par value is $100,000? What is the current yield of this note?
B)
Today is February 15, 2008 | |||||||
Type. |
Issue. Date.
| Price (per $100 par value) | Coupon Rate. | Maturity Date. | YTM. | Current Yield. | Rating |
Bond. Aug. 2003. 97.48 4.00%. 8-15-2003. ? 4.103%. AAA
Assume a $100,000 par value. What is the yield to maturity of the August 2003 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this relationship?
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