Maturity equal to the maturity of treasury sec being valued

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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.

Reference no: EM131886505

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Maturity equal to the maturity of treasury sec being valued : What happens if Market participants value security using just yield for On-The-Run Treasury with a maturity equal to the maturity of Treasury sec being valued?
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