The minimum yield sought on an investment as measured by the yield on an on-the-run Treasury security with comparable maturity is referred to as the:
A) Base interest rate.
B) Benchmark interest rate.
C) Bond-equivalent interest rate.
D) a and b only.
E) B and c only.

Question

Quizplus · Accepted Answer

The minimum yield sought on an investment is often referred to as both the base interest rate and the benchmark interest rate, as they both relate to the yield on a comparable Treasury security.

The Minimum Yield Sought on an Investment as Measured by the Yield