1. What happens if Market participants value a security using just the yield for the On-The-Run Treasury with a maturity equal to the maturity of the Treasury sec being valued?
2. A college student borrows $1500 during his senior year. The loan is to be repaid in 20 equal , quarterly payments. The interest rate is 4% per year with the first payment to be made 3 years after the date of the loan. What will be the amount of the quarterly payment.