investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond's current market price is $925 for a $1000 par value instrument. Suppose the inyestor sells the bond at the end of 13 years for $970. What is the holding-period yield

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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.