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P6-20 (similar to) Question Help Treasury notes and bonds. Use the information in the following table Today is February 15, 2008 Type Bond Issue Price

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P6-20 (similar to) Question Help Treasury notes and bonds. Use the information in the following table Today is February 15, 2008 Type Bond Issue Price (por Date Coupon Maturity Yld Rating 5768% 100 par Rate YTM Current Date Aug 2002 86.68 500% 8-15-2012 Assume a $100,000 par value. What is the yinld to maturity of the August 2002 Treasury band with semiannual payment? Compare the yield to maturity and the current ield How do you explain this relationship? What is the yield to maturity of the August 2002 Treasury bond? 8.63 % (Round to three decimal places ) Compare the yield to maturity and the current yield. How do you explain this relationship? (Select the best response) OA. If a bond sells for its par value the yield to maturity is greater than the current yield O B. Theres no certain relationship between the yield to maturity and the current yield O C. Ifa bond sells at a discount, the yield to maturity is greater than the current yield D. if a bond sells at a premium, the yield to maturity is greater than the current yield

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