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Use the information in the following table: Assume a $100,000 par value. What is the yield to maturity of the August 2000 Treasury bond with

Use the information in the following table:

Assume a $100,000 par value. What is the yield to maturity of the August 2000 Treasury bond with semiannual payment? Compare the yield to maturity and the

current yield. How do you explain this relationship?

Type

Issue Date

Price

Coupon Rate

Maturity Date

YTM

Current Yield

Rating

Note

Aug 2000

79.06

3.50%

8-15-2010

4.427%

AAA

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