Chen buys a T-bill with a face value of $10,000.00 on 2021-05-12 that matures on 2021-10-29. The annual simple interest rate is 1.875%, and the daycount convention is ACT/365. What price P does he pay?   a.   P = $9,917.76. b.   P = $9,874.47. c.   P = $9,913.43. d.   P = $9,883.13. e.   P = $9,909.10.

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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.