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Treasury notes and bonds. Use the information in the following table: Assume a $100,000 par value. What is the yield to maturity of the August

Treasury notes and bonds. Use the information in the following table: 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 this relationship?

What is the current yield of the August 2000 Treasury note?

What is the yield to maturity of the August 2000 Treasury bond?

Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating
Note Aug 2000 88.48 3.25% 8-15-2010 3.673% AAA

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