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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Price (per Current Rating Issue Date Aug 2003 Coupon

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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Price (per Current Rating Issue Date Aug 2003 Coupon Maturity $100 par value) Type Bond 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 Rate Date Yield 87.48 4.75% 8-15-2013 5.430% maturity and the current yield. How do you explain this relationship? What is the yield to maturity of the August 2003 Treasury bond? % (Round to three decimal places.)

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