Question: 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

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 thisrelationship?

What is the yield to maturity of the August 2005

Today is February 15, 2008 Issue Coupom Maturity Current Date Yield Rating 6.50% 2-15-2010 3.952% 6.199% AAA 4.250% AAA 7.25% 8-15-2023 4.830% 5.745% AAA 6.736% AAA Price Rate Date YTM Iype Note Feb 2000 Note Aug 2005 100.00 4.25% 8-15-2018 Bond Aug 2003 Bond Feb 1995 126.19 8.50% 2-15-2015

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