I was looking at government bonds/treasuries and I wondered if my line of thinking is correct:
1) In general, how is the coupon set? I found out that usually they are auctioned for (a bit) less than par value, which makes me think a coupon based on the market is set by the treasury and then it fetches a price according to market demands. Is this correct?
2) On bloomberg.com, you can view the 10y Treasury coupon. Now I was wondering: Is the coupon simply the coupon of the latest auction? If so, it it the same for long- and short-term debt (bills, notes, bonds)?