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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 2001 Treasury bond with semiannual payment? Compare the yield to maturity and the current vield. How do you explain this relationship? What is the yield to maturity of the August 2001 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 Incr Date Aug 2001 Bond Price (per $100 par value) 81.58 Coupon Rate 3.75% Maturity Date 6-15-2011 YTM Current Withd 4.597% Rating AAA X

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 2001 Treasury bond with semiannual payment? Compare the yield to maturity and the current vield. How do you explain this relationship? What is the yield to maturity of the August 2001 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 Incr Date Aug 2001 Bond Price (per $100 par value) 81.58 Coupon Rate 3.75% Maturity Date 6-15-2011 YTM Current Withd 4.597% Rating AAA X

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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**Treasury Notes and Bonds Analysis** Use the information in the following table. Assume a $100,000 par value. **Yield to Maturity and Current Yield Analysis** - What is the yield to maturity of the August 2001 Treasury bond with semiannual payments? - Compare the yield to maturity and the current yield. How do you explain this relationship? **Task** What is the yield to maturity of the August 2001 Treasury bond? (Round to three decimal places.) --- **Data Table** *(Click on the following icon to copy its contents into a spreadsheet.)* **Date:** February 15, 2008 | Type | Issue Date | Price (per $100 face value) | Coupon Rate | Maturity Date | YTM | Current Yield | Rating | |------|------------|-----------------------------|-------------|---------------|-----|---------------|--------| | Bond | Aug 2001 | 81.58 | 3.75% | 8-15-2011 | - | 4.597% | AAA | **Explanation:** - **Type:** The financial instrument in question is a bond. - **Issue Date:** The bond was issued in August 2001. - **Price (per $100 face value):** The current price of the bond is $81.58, meaning it's trading below its face value. - **Coupon Rate:** This bond has an annual coupon rate of 3.75%. - **Maturity Date:** The bond is set to mature on August 15, 2011. - **Current Yield:** The yield based on the bond's current price is 4.597%, which indicates a higher return compared to the coupon rate due to its discount price. - **Rating:** The bond holds a rating of AAA, signifying a high level of creditworthiness. This data table facilitates the analysis of Treasury bond yields, enabling users to compare the yield to maturity and the current yield effectively.
Transcribed Image Text:**Treasury Notes and Bonds Analysis** Use the information in the following table. Assume a $100,000 par value. **Yield to Maturity and Current Yield Analysis** - What is the yield to maturity of the August 2001 Treasury bond with semiannual payments? - Compare the yield to maturity and the current yield. How do you explain this relationship? **Task** What is the yield to maturity of the August 2001 Treasury bond? (Round to three decimal places.) --- **Data Table** *(Click on the following icon to copy its contents into a spreadsheet.)* **Date:** February 15, 2008 | Type | Issue Date | Price (per $100 face value) | Coupon Rate | Maturity Date | YTM | Current Yield | Rating | |------|------------|-----------------------------|-------------|---------------|-----|---------------|--------| | Bond | Aug 2001 | 81.58 | 3.75% | 8-15-2011 | - | 4.597% | AAA | **Explanation:** - **Type:** The financial instrument in question is a bond. - **Issue Date:** The bond was issued in August 2001. - **Price (per $100 face value):** The current price of the bond is $81.58, meaning it's trading below its face value. - **Coupon Rate:** This bond has an annual coupon rate of 3.75%. - **Maturity Date:** The bond is set to mature on August 15, 2011. - **Current Yield:** The yield based on the bond's current price is 4.597%, which indicates a higher return compared to the coupon rate due to its discount price. - **Rating:** The bond holds a rating of AAA, signifying a high level of creditworthiness. This data table facilitates the analysis of Treasury bond yields, enabling users to compare the yield to maturity and the current yield effectively.
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