The Term Structure Is Often Based on Rates of Return

question 100

Multiple Choice

The term structure is often based on rates of return or yields offered by ________ which are ________ issued by the U.S.Treasury with different maturities.

• A) Treasury securities; mutual fund securities
• B) Treasury securities; equity securities
• C) Treasury securities; debt securities
• D) None of the above.

---

Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses with its before-interest earnings.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each sales dollar that is gross profit.

Return on Equity

A measure of financial performance that calculates the return on shareholders' equity investments.

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by its shareholders' equity.