## Total Capital

Shareholders’ equity plus long-term debt.

## Treasury bill

A bond issued by the US government with a fixed interest rate and a maturity of less than one year

## Treasury bond

A bond issued by the US government with a fixed interest rate and a maturity of more than 10 years.

## Treasury note

A bond issued by the US government with a fixed interest rate and a maturity of one to 10 years

## Uninsured and Underinsured Motorist Coverage

Insurance coverage that reimburses medical expenses and lost wages from a car accident when the at-fault driver does not have insurance or his or her limit of liability do not cover your losses.

## Variable interest rate

An interest rate on borrowed money that changes based on outside influences.

## Vesting

A process by which an employer increases your ownership of an asset based on how long you have worked for the employer. Vesting is often applied to employer’s matching contributions to a defined contribution retirement plan. For example, if an employer put \$1,000 a year in a defined contribution plan for your benefit with a vesting schedule of 20% per year, you would own 20% of the first \$1,000 or \$200 at the end of the first year, 40% of the first two years’ \$1,000 contributions or \$800 at the end of the second year and so on up to owning 100% of all contributions once you have been with the employer for five years. If you leave the company before you are fully vested, the employer will take the portion of its contributions that are not yet vested and the related investment returns out of your account. You always own 100% of your contributions and their returns.

## Volatility

The possibility that something will deviate from its expected or average value, including both good and bad results.

## Weighted average

A calculation using all of the observations of a variable with each observation being assigned a weight.  The weight is the relative importance of that observation.  Each observation is multiplied by its weight.  The sum of those products is divided by the sum of the weights.  If all of the weights are equal, the result is the average most commonly used.  As an example, there are three observations of some variable – 0, 1 and 2.  If the weights applied to each of them is the same, e.g., 1, the weighted average is the sum of the three observations divided by the sum of the weights or (0+1+2)/(1+1+1) = 3/3 = 1.   If the weight given to 1 and 2 is still 1, but the weight given to 0 is increased to 4, the calculation becomes (4*0 + 1*1 + 1*2)/(4+1+1) = 3/6 = 0.5.

## Yield curve

The relationship between interest rates and the maturities of bonds with the same quality and characteristics.