The Pure Yield Curve Can Be Estimated

question 42

Multiple Choice

The pure yield curve can be estimated

• A) by using zero-coupon bonds.
• B) by using coupon bonds if each coupon is treated as a separate "zero."
• C) by using corporate bonds with different risk ratings.
• D) by estimating liquidity premiums for different maturities.
• E) a and b.

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Definitions:

Information Technology

The use of computers, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all units available for sale during the period.

Materials Preparation

The process involved in getting raw materials ready for production or manufacturing, including cleaning, sorting, and pre-processing steps.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished units that could be obtained from a set of partially completed units.