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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Type Price (per Coupon Maturity $100 par Rate Current

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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Type Price (per Coupon Maturity $100 par Rate Current Rating Issue Date YTM Date Yield value) 83.05 Bond Aug 2000 | | 425% 8-15-2010 Assume a $100,000 par value What is the yield to maturity of the August 2000 Treasury bond with semiannual payment? Comp What is the yield to maturity of the August 2000 Treasury bond? 5.117% LI Compare the yield to maturity and the current yield How do you explain this relationship (Select the best response) % (Round to three decimal places) O A. If a bond sells at a discount, the yield to maturity is greater than the current yield O B. If a bond sells for its par value, the yield to maturity is greater than the current yield. C. There is no certain relationship between the yield to maturity and the current yield. OD. If a bond sells at a premium, the yield to maturity is greater than the current yield

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