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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
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?
today is: Feb 15, 2008
Type: bond
Issue date: AUG 2000
Price (per $100 par value): 89.45
Coupon Rate: 4.25
Maturity date: 8-15-2010
YTM: ?
Current yield: 4.751%
Rating: AAA
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