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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 2002 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this relationship? What is the yield to maturity of the August 2002 Treasury bond?

Today is February 15, 2008

Type

Issue Date

Price (per $100 parvalue)

Coupon Rate

Maturity Date

YTM.

Current Yield

Rating

Bond

Aug 2002

78.03

3.00%

8-15-2012

3.845%

AAA

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