Question
Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Type Issue Date Price Coupon Rate Maturity Date YTM
Treasury notes and bonds. Use the information in the following table.
| Today is February 15, 2008 |
| |||||||
| Type | Issue Date | Price | Coupon Rate | Maturity Date | YTM | Current Yield | Rating | |
| Bond | Aug 2003 | - | 7.25% | 8-15-2023 | 5.304% | AAA | ||
A: What is the price of the August 2003 Treasury bond with semiannual payment (assume a $100,000 par value) with the yield to maturity from the table?
B: What is the current yield of this bond?
C: Why is the current yield higher than the yield to maturity?
Hint: Make sure to round all intermediate calculations to at least six decimal places
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
