Treasury STRIPS Are

question 39

Multiple Choice

Treasury STRIPS are

• A)securities issued by the Treasury with very long maturities.
• B)extremely risky securities.
• C)created by selling each coupon or principal payment from a whole Treasury bond as a separate cash flow.
• D)created by pooling mortgage payments made to the Treasury.
• E)C and D

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Definitions:

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing net income and revenue.

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.

Receivables Ratio

The Receivables Ratio, also known as the Accounts Receivable Turnover Ratio, measures how efficiently a company collects cash from its customers by comparing sales to the average receivables.

Outstanding Accounts

Accounts or invoices that have been billed but not yet paid by customers.