A yield curve graphically depicts the relationship between which of these pairs?
A)Term to maturity and interest rates
B)Term to maturity and structure of stock options
C)Term to maturity and tax treatment
D)Term to maturity and credit risk

Question

Quizplus · Accepted Answer

A yield curve shows the relationship between the term to maturity (time until a bond or other fixed income security matures) and the interest rate (yield) offered on that security. Therefore, choice A is the correct answer. The other options (B, C, and D) are not related to the yield curve.

A Yield Curve Graphically Depicts the Relationship Between Which of These