I'm looking at the following secondary CD on Fidelity and I'm trying to figure out how much interest I will receive when it matures.
Price (Ask) 100.157 Ask Yield to Maturity 1.557% Current Yield 2.845% Coupon Frequency Semi-Annually Maturity Date 05/21/2018
It looks like I'd be paying a little more than the face value (100.157)
I understand that the current yield is what the original rate was set at (2.845%)
I assume that the Yield to Maturity is the current rate based on the extra money I have to spend to buy the CD
Where I am not clear is, it seems like I would be getting the final interest payment when the CD matures. That would be 1.427% minus the extra I pay over the face value. But that really seems to good to be true considering it matures at the end of May. Am I misunderstanding something? It could also be that I am looking at the prices after hours.