Question

A)

Today is February​ 15, 2008

Type. Issue Date.   Price. Coupon Rate.   Maturity Date.    YTM.   Current Yield. Rating.

Note Feb 2003. ? 6.75% 2-15-2013. 5.532%. ------- AAA

What is the price in dollars of the February 2003 Treasury note with semiannual payment if its par value is ​$100,000​? What is the current yield of this​ note?

B)

Today is February​ 15, 2008
Type.	Issue. Date.	Price​ (per $100 par ​value)	Coupon Rate.	Maturity Date.	YTM.	Current Yield.	Rating

Bond. Aug. 2003. 97.48 4.00%. 8-15-2003. ? 4.103%. AAA

Assume a $100,000 par value. What is the yield to maturity of the August 2003 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this​ relationship?  

Answer 1

A)