The Treasury Yield Curve Plots the Yields on Treasury Notes

question 76

Multiple Choice

The Treasury yield curve plots the yields on Treasury notes and bonds relative to the ____ of those securities.

• A)face value
• B)market price
• C)maturity
• D)coupon rate
• E)issue date

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Definitions:

Double-declining-balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate and applies it to the undepreciated balance at the start of each period.

Straight-line Method

A method of calculating depreciation for an asset that spreads the cost evenly over its useful life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life, reducing its book value.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it could be sold for or scrapped for parts.