The relationship among interest rates on bonds that are otherwise similar but that have different maturities is known as the

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The relationship among interest rates on bonds with different maturities is known as the term structure of interest rates. The term premium is the additional yield paid to investors for holding a longer-term bond. The risk structure of interest rates refers to the differences in interest rates due to varying levels of credit risk among issuers. Treasury bond coupon is the interest rate that the issuer of a Treasury bond pays to the bondholders.

The Relationship Among Interest Rates on Bonds That Are Otherwise