Given the scenario that a treasury bond will be paying a lump sum of $1,000 exactly 3 years from period 0.  The paper rate is 6%, semiannual compounding. It will have:   a periodic interest rate is greater than 3%. a periodic rate is less than 3%. a present value would be greater if the lump sum were discounted back for more periods. a PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity. a present value of the $1,000 would be the same if interest were compounded monthly rather than semiannually. Group of answer choices 3 4 5 2 1 Cannot be determined

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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.