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On-the-run treasury issues are the most recently auctioned issues of a given maturity. They include Treasury bills of 3-month, 6-month and 1-year maturity; treasury notes with 2-year, 5-year and 10-year maturity; and Treasury bonds with 10-year and 30-year maturity.
2. Suppose a 12% coupon bond sells at par today; and three years from today, the required rate on the same bond is 8%. What is the coupon rate on the bond today and what will it be
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