Today is February 15 2008 Type: Bond Issue Date: Aug 2003 Price:?

Today is February 15 2008

Type: Bond

Issue Date: Aug 2003

Price:?

Coupon Rate 9.00%

Maturity Date: 8-15-2008

YTM: 4.863%

Current Yield:?

Rating: AAA

What is the price of the August 2003 treasury bond with semiannual payment (assume a $100000 par value) with the yield to maturity from the information
above?

What is the current yield of this bond?

Why is the current yield higher than the yield to maturity?

Make sure to round all intermediate calculations to at least 6 decimal places and round answer to the nearest cent.