The most actively traded government securities in the secondary market are
A) the oldest securities outstanding.
B) securities issued more than one year but less than five years ago.
C) the securities associated with the current coupon issue.
D) the securities with the longest maturity.

Question

Quizplus · Accepted Answer

The most actively traded government securities in the secondary market are those associated with the current coupon issue. These securities typically have a maturity of 10 years or less and are popular among investors because they offer a relatively stable yield and a high degree of liquidity. Older securities may have lower trading volumes, and longer-term securities may be less popular due to their higher sensitivity to interest rate changes. Securities issued within the last five years may still be actively traded, but they are not necessarily the most popular securities in the market.

The Most Actively Traded Government Securities in the Secondary Market