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 2006 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this relationship? Question content area bottom Part 1 What is the yield to maturity of the August 2006 Treasury bond? (Round to three decimal places.)

1. Type: Bond
2. Issue Date: Aug 2006
3. price (per $100 par value) = 88.52
4. Coupon Rate = 5.00%
5. Maturity Date: 8-15-2016
6. YTM: na
7. Current Yield = 5.649%
8. Rating: AAA