You are given the following information: A 183-day T-bill, face value $100, currently trading at a discount rate of 5% a) What is the price of the T-bill b) You sell the T-bill 10 days later. The T-bill discount rate is 4.5% c) What is the semi-annual compounded APR.

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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.