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Bond Coupon Maturity Asked Ask Yield Months to maturity 1 2.000 2020 Nov 01 99.728 2.13 26 2 2.250 2029 June 01 2.255 129 3
Bond |
Coupon | Maturity |
Asked | Ask Yield | Months to maturity |
1 | 2.000 | 2020 Nov 01 | 99.728 | 2.13 | 26 |
2 | 2.250 | 2029 June 01 |
| 2.255 | 129 |
3 | 2.000 | 2051 Dec 01 | 93.269 | 2.29 | 400 |
1.
For each of the Government bonds and notes listed above, calculate the current yield (based on the asked price) and show how it differs from the yield to maturity.
When is the current yield a good approximation of the yield to maturity?
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