2004 2005 2006 2007 a) 26.03% b) 18.95% c) 20.0% Return d) 118.95 30% Assume it is January 1, 2008 and you feel that these returns are indicative of the equity returns in the future. What return would you use for long-run retirement Olanning? 0% 40% 10%

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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.