The yield curve reveals that the 1-year spot rate is 6.9% and the 2-year spot rate is 9.0%. What is the duration of a 2-year bond with a face value of $1,000.00 making annual coupon payments of 35.6%? Do not report the modified duration.

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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.