Holding other factors such as risk constant, the relationship between the maturity and the annualized yield of debt securities is called the
A)term structure of interest rates.
B)default structure of interest rates.
C)liquidity structure of interest rates.
D)tax structure of interest rates.
E)None of these are correct.

Question

Quizplus · Accepted Answer

The term structure of interest rates, also known as the yield curve, describes the relationship between the maturity (the term) of debt securities and their annualized yield, assuming other factors like risk are constant.

Holding Other Factors Such as Risk Constant, the Relationship Between