Question: Please answer both parts! Treasury notes and bonds. Use the information in the following table: LOADING... . What is the price of the August 2003

Please answer both parts!

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

LOADING...

. What is the price of the August

2003

Treasury bond

LOADING...

with

semiannual

payment (assume a

$100,000

par value

LOADING...

) with the yield to maturity

LOADING...

from the table? What is the current yield

LOADING...

of this bond? Why is the current yield higher than the yield to maturity?

Hint: Make sure to round all intermediate calculations to at least six decimal places.

What is the price in dollars of the August

2003

Treasury bond?

$enter your response here

(Round to the nearest cent.)

today is feb 15th 2008

Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Bond Aug 2003 8.50% 8-15-2028 5.959% AAA

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