Consider the following zero coupon bonds: Bond    Yrs to Mat.       Yield to Maturity a          1                      0.0433 b          2                      0.046 c          3                      0.0495 d          4                      0.0511 e          5                      0.0531 f           6                      0.0555 What is the forward rate for year5 Group of answer choices 0.0630 0.0593 0.0648 0.0611 0.0668

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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.