What is the annualized yield (rounded to three decimal places) on a seven-month U.S. Treasury bill that has a discount yield of 3.95% ? a. 4.042% b. 3.806% c. 3.950% d. 4.099%

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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.