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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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