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LOS b, (Part 2): Differentiate between on-the-run and off-the-run Treasury securities.
Q1. Consider three U.S. Treasury notes that were outstanding on November 30, 2006:
|
Series |
Interest Rate |
Issue Date |
Payable |
Amount Outstanding ($ mil.) |
|
M |
3.375 |
9/15/04 |
9/15/09 |
15,005 |
|
P |
3.500 |
11/15/04 |
11/15/09 |
18,752 |
|
U |
4.625 |
11/15/06 |
11/15/09 |
24,773 |
(Source: Monthly Statement of the Public Debt, U.S. Department of the Treasury)
The market price of which of these notes most likely provided the best information about current 3-year Treasury yields as of November 30, 2006?
A) Series P.
B) Series M.
C) Series U.
Q2. Which of the following is a difference between an on-the-run and an off-the-run issue? An on-the-run issue:
A) is publicly traded whereas an off-the-run issue is not.
B) is the most recently issued security of that type.
C) tends to sell at a lower price.
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发表于 2009-3-2 16:17
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