An on-the-run ten-year Treasury security is
A)a ten-year government bond that is in greatest demand by investors who want to hold it until it matures.
B)a ten-year government bond that can be used to pay estate taxes, also known as a flower bond.
C)a non-taxable ten-year government bond.
D)a ten-year government bond that was the most recently issued.

Question

Quizplus · Accepted Answer

An on-the-run Treasury security refers to the most recently issued U.S. Treasury bond or note of a particular maturity. These are the most liquid and are often used as benchmarks for other debt securities.

An On-The-Run Ten-Year Treasury Security Is