In examining the term structure of interest rates, the interest rates of have exceeded short-term rates.
A)Commercial paper
B)Notes payable
C)Corporate bonds
D)Marketable securities

Question

Quizplus · Accepted Answer

Corporate bonds typically have a longer maturity than short-term loans such as commercial paper or notes payable, and therefore usually have higher interest rates to compensate for the longer duration of the loan. This results in a higher yield curve for corporate bonds compared to short-term rates. Marketable securities can encompass a variety of financial instruments with different term structures, so it is not a clear choice.

In Examining the Term Structure of Interest Rates, the Interest