The yield curve is a graphical relationship between
A)the spreads among interest rates and their tax treatment.
B)interest rates (yields) on a particular security and its risk.
C)interest rates (yields) on a particular structure and its after-tax return.
D)interest rates (yields) on a particular security and its term to maturity.

Question

Quizplus · Accepted Answer

The yield curve plots the interest rates (yields) on a particular security (usually government bonds) against their term to maturity. This shows the relationship between short-term and long-term interest rates, and can be used to make inferences about the expectations of investors and the overall state of the economy.

The Yield Curve Is a Graphical Relationship Between