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Today is February15, 2008 Type: Bond Issue Date: August 2000 Price (Per $100 par value): 81.02 Coupon Rate: 4.00% Maturity Date: 8-15-2010 YTM: ? Current
Today is February15, 2008
Type: Bond
Issue Date: August 2000
Price (Per $100 par value): 81.02
Coupon Rate: 4.00%
Maturity Date: 8-15-2010
YTM: ?
Current Yield: 4.937%
Rating: AAA
Assume a $100,000 par value. What is the yield to maturity of the August 2000 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield How do you explain thisrelationship?
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