12. If a financial contract promises you to pay $110 next year and $121 the year after that, and if you lend $200 today, what is its yield to maturity in this contract? Write down the appropriate formula, calculation procedure, and the answer.

Q: (3) 11.015229%

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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.