The relationship among interest rates on bonds with identical default risk but different maturities is called the
A) time-risk structure of interest rates.
B) liquidity structure of interest rates.
C) yield curve.
D) bond demand curve.

Question

Quizplus · Accepted Answer

The yield curve depicts the relationship between the interest rates on bonds of the same default risk but with different maturities. The curve shows how the yield or interest rate varies with the time to maturity.

The Relationship Among Interest Rates on Bonds with Identical Default