Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $

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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.