T-notes and T-bonds are often issued at a slight discount from their PAR value because:

Multiple Choice

investors prefer older notes and bonds to the most recent issue.

T-bonds and T-notes are zero coupon securities like T-bills and are sold at a discount.

The stop-out yield determined at auction is rounded down to the nearest 0.125% to set the coupon rate.

Investors require an additional risk premium to invest in government securities due to the deficit.

The treasury sells T-notes and T-bonds at a slight discount to attract large investors.