Question: Please answer both parts! Treasury notes and bonds. Use the information in the following table: Assume a $100,000 par value. What is the yield to

Please answer both parts!

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

Assume a

$100,000

par value. What is the

yield to maturity

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of the August 2001 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield

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How do you explain this relationship?

Todays is Feb. 15 2008

Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Note Aug 2001 81.22 4.75% 8-15-2011 5.848% AAA

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