A company issued bonds with a 30-year maturity, a $1,000 par value, a 13.0% coupon rate, and semiannual interest payments. 10 years after the bonds were issued, the going rate of interest on bonds such as these changed to 6.0%. At what price would the bonds sell? $1,809.32 $1,086.19 $851.52 $1,138.33 $1,809.02

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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.