The Yield Curve A)is a Graphical Depiction of Term Structure of Interest Rates

question 8

Multiple Choice

The yield curve
$$\begin{array} { l | l } \hline \text { Year } & \text { 1-Year Forward Rate } \\\hline 1 & 5.8 \% \\\hline 2 & 6.4 \% \\\hline 3 & 7.1 \% \\\hline 4 & 7.3 \% \\\hline 5 & 7.4 \% \\\hline\end{array}$$

• A)is a graphical depiction of term structure of interest rates.
• B)is usually depicted for U.S.Treasuries in order to hold risk constant across maturities and yields.
• C)is usually depicted for corporate bonds of different ratings.
• D)A and B.
• E)A and C.

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Definitions:

Special Journals

Accounting books or ledgers used for recording and categorizing specific types of transactions such as sales, purchases, cash disbursements, and cash receipts in a more efficient manner.

Merchandise Purchase

Transactions involving the buying of goods for resale in the normal course of business.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.

Accounts Receivable Subsidiary Ledger

A detailed ledger that contains individual customer accounts, tracking the amounts owed by each customer to a business.