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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
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? What is the yield to maturity of the August 2003 Treasury bond? % (Round to three decimal places.) Compare the yield to maturity and the current yield. How do you explain this relationship? (Select the best response.) O A. If a bond sells at a premium, the yield to maturity is greater than the current yield. B. If a bond sells at a discount, the yield to maturity is greater than the current yield. O c. There is no certain relationship between the yield to maturity and the current yield. OD. If a bond sells for its par value, the yield to maturity is greater than the current yield. Data Table - (Click on the following icon in order to copy its contents into a spreadsheet.) Today is February 15, 2008 Price (per $100 par Issue Date Type Coupon Rate Maturity Date YTM Current Yield value) Bond Aug 2003 87.71 4.25% 8-15-2013 4.846% Print Done Click to select your answer(s)
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