A UK government bond has exactly three years to maturity. The bond makes semi-annual coupon payments of £2.50 and has a par value of £100. What is the price of the bond if the semi - annual yield to maturity on the bond is 1.75%?   a. £102.50   b. £100.00   c. £95.00   d. £103.00   e. £104.25

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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.