Question: Type Issue Date Price Coupon Rate Maturity Date YTM Current Yield Rating Note Aug 2005 100 4.25% 8-15-2018 - 4.250% AAA Assume a $100,000 par

Type	Issue Date	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Note	Aug 2005	100	4.25%	8-15-2018	-	4.250%	AAA

Assume a $100,000 par value. What is the yield to maturity of the August 2005 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this relationship?

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