The term structure of interest rates:
A) Always results in an upward sloping yield curve
B) Represents the variation in yields for securities differing in maturities
C) Usually results in a flat yield curve
D) Usually results in a downward sloping yield curve

Question

Quizplus · Accepted Answer

The term structure of interest rates represents the variation in yields for securities differing in maturities, and therefore results in a yield curve that can be upward sloping, downward sloping, or flat, depending on market conditions.

The Term Structure of Interest Rates