6, 6. Assuming annual compounding, what's the YTM of a portfolio with one Bond A and one Bond C7 Bond Price CF, CF2 A -100 15 15 -100 6. 106 -92 A 13.31% 13.41% 13.51% 13.61% E) 13.71%

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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.