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a/ What is the yield to maturity of the February 2000 Treasury bond based on the price in the table? b/ Assume that the bond

a/ What is the yield to maturity of the February 2000 Treasury bond based on the price in the table?

b/ Assume that the bond has a $100,000 par value and makes semiannual coupon payment. What is the current yield of the bond?

c/ Why is the current yield higher than the yield to maturity?

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Treasury notes and bonds. Use the information in the following table Today is February 15, 2008 Type Price (per Coupon Issue Date Maturity Date Current Yield Rating $100 par value) 125.04 YTM Rate Bond Feb 1994 8.00% 2-15-2014 What is the yield to maturity of the February 1994 Treasury bond based on the price in the table? Assume that the bond has a $100,000 par value and makes semiannual coupon payment. What is the current yield of the bond? Why is the current yield higher than the yield to maturity? What is the yield to maturity of the February 1994 Treasury bond? % (Round to three decimal places.)

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