**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.

YTM or yield to maturity is the annual return that a bond holder would receive if they held the bond…

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

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

Problem 1PS

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Bond prices. Price the bonds from the following table with monthly coupon payments Hint: make sure to round all intermediate calculations to at least seven decimal places.
Please answer all parts with explanations thx
A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of 5.23 percent, what are the price and bond equivalent yield? Use Excel to answer this question. Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places. Price Bond equivalent yield %
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V5 2. Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term Canada bonds (Government of Canada benchmark bond yields, long term )(series V122544). (Note these are daily rates – convert it into monthly rates) a) Construct a yield curve by creating a line graph for January 2021 and for the same month in 2020, across all the maturities. (on excel) b) How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?
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