The term structure of interest rates reﬂects the:

Question

Quizplus · Accepted Answer

The term structure of interest rates represents the relationship between the maturity of bonds and their yield or interest rates. It primarily reflects the pure time value of money for various lengths of time, meaning that longer-term bonds will generally have a higher yield than shorter-term bonds due to the higher time value of money associated with longer periods. The other choices do not accurately represent the term structure of interest rates.

The Term Structure of Interest Rates Reﬂects The