The term structure of interest rates
A) describes the relationship between maturity and yield for similar securities.
B) ranks security yield according to the default risk structure.
C) describes how interest rates vary over time.
D) describes the pattern of interest rates over the business cycle.

Question

Quizplus · Accepted Answer

The term structure of interest rates refers to the relationship between the yield of bonds and their maturities, typically depicted as a yield curve.

The Term Structure of Interest Rates