A USTreasury Security That Pays a Fixed Coupon and Has an an Initial

question 46

Multiple Choice

A U.S.Treasury security that pays a fixed coupon and has an initial maturity of 2 to 10 years is called a:

• A) TIPS.
• B) Treasury bill.
• C) Treasury bond.
• D) Treasury note.

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Definitions:

Perfectly Inelastic

A situation where the demand for a product does not change in response to price changes.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in the product's price.

Total Revenue

The gross income a corporation achieves by trading products or delivering services across a certain span of time.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small change in price leads to a larger change in quantity demanded.