A debenture has the following characteristics principal amount shs 1000 term to maturity 20 years coupon rate 16 % interest payments semiannual   required : calculate the price of the debenture if the market interest rate is 20% 16% 12%

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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.