The on the run yield curve is
A) a plot of yield as a function of maturity for zero-coupon bonds.
B) a plot of yield as a function of maturity for recently-issued coupon bonds trading at or near par.
C) a plot of yield as a function of maturity for corporate bonds with different risk ratings.
D) a plot of liquidity premiums for different maturities.

Question

Quizplus · Accepted Answer

The on the run yield curve represents the yields of the most recently issued (or "on the run") government bonds, which are typically coupon bonds trading at or near their par value. These bonds are considered the most liquid and are often used as benchmarks for the bond market.

The on the Run Yield Curve Is