Question
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 2003 Treasury bond with semiannual
payment? Compare the yield to maturity and the current yield? How do you explain this relationship?
Today is February 15,2008
Tpye Issue Date Price (per $100 par value) Coupon Rate Maturity Date YTM
Bond Aug 2003 92.69 3.50% 5-15/2013 ----
Current yield
3.776%
What is the yield to maturity of the August
2003 Treasury bond?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
