Question: please help Treasury notes and bonds. Use the information in the following table: Assume a $100,000 par value. What is the yield to maturity of

Treasury notes and bonds. Use the information in the following table: Assume a $100,000 par value. What is the yield to maturity of the August 2004 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this relationship? What is the yield to maturity of the August 2004 Treasury bond? % (Round to three decimal places.) - Data table (Click on the following icon in order to copy its contents into a spreadsheet) Today is February 15, 2008 Issue Price (per Type Coupon $100 par Maturity Date YTM Rate Date value) Bond Aug 2004 91.37 3.25% 8-15-2014 Current Yield Rating 3,557% AAA Print Done Compare the yield to maturity and the current yield. How do you explain this relationship? (Select t X A. If a bond sells at a premium, the yield to maturity is greater than the current yield. *B. If a bond sells at a discount, the yield to maturity is greater than the current yield. C. There is no certain relationship between the yield to maturity and the current yield. D. If a bond sells for its par value, the yield to maturity is greater than the current yield
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
