Question: type issue date price (per $100 par value) Coupon Rate Maturity Date Yield to maturity Current Yield Rating Bond aug 2005 79.56 4.50% 8-15-2015 -

type	issue date	price (per $100 par value)	Coupon Rate	Maturity Date	Yield to maturity	Current Yield	Rating
Bond	aug 2005	79.56	4.50%	8-15-2015	-	5.66%	AAA

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 2005 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 2005 Treasury bond?

Compare the yield to maturity and the current yield. How do you explain this relationship?(Select the best response.)

A. If a bond sells at a discount, the yield to maturity is greater than the current yield.

B. If a bond sells at a premium, the yield to maturity is greater than the current yield.

C. If a bond sells for its par value, the yield to maturity is greater than the current yield.

D. There is no certain relationship between the yield to maturity and the current yield.

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