Loras College’s bond is currently trading at a spread of 55.2 basis points to Treasuries and the yield on Treasury notes is 2.153%, the yield on the Loras College is closest to   A. 2.2082%. B. 2.7050%. C. 3.1075%.

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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.