Suppose you purchase a T-bills that is 125 days from maturity for $9,765. The T-bills has a face value of $10,000. a. Calculate the T-bills’s quoted discount rate.  b. Calculate the T-bills’s annualized rate. c. Who are the major issuers of and investors in money market securities?

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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.