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Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Price (per Issue Type $100 par Date value) Bond
Treasury notes and bonds. Use the information in the following table. Today is February 15, 2008 Price (per Issue Type $100 par Date value) Bond Feb 1996 112.19 Coupon Rate Maturity Date YTM Current Yield Rating 9.00% 2-15-2016 AAA What is the yield to maturity of the February 1996 Treasury bond based on the price in the table? Assume that the bond has a $100,000 par value and makes semiannual coupon payment. What is the current yield of the bond? Why is the current yield higher than the yield to maturity
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