Question: 1. Treasury notes and bonds. Use the information in the following table: Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Bond

1. Treasury notes and bonds. Use the information in the following table:

Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Bond Feb 2002 119.49 8.50% 2-15-2022 AAA

What is the yield to maturity of the February 2002 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?

QUESTION 2:

Treasury notes and bonds. Use the information in the following table:

Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Note Feb 2000 6.00% 2-15-2010 4.294% AAA

What is the price in dollars of the February 2000 Treasury note with semiannual payment if its par value is $100,000? What is the current yield of this note?

What is the price in dollars of the February 2000 Treasury note?

What is the current yield of the February 2000 Treasury note?

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