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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Issue Type Date Bond Aug 2003 Price YTM Coupon

Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Issue Type Date Bond Aug 2003 Price YTM Coupon Rate 7.25% Rating Maturity Date 8-15-2018 Current Yield 6.586% AAA 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? What is the current yield of this bond? 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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