Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate on these 8 year bonds is 5.5%, how much is the bond worth today? Oa. $792.02 b. $718.39 c. $684.18 O d. $754.31 Oe. $651.60

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.