The term structure of interest rates refers to the relationship:
A) that holds time to maturity constant for a particular class of bonds but examines that relationship at successive intervals.
B) that holds time to maturity constant but allows yields to vary for different categories of bonds at a particular time.
C) between time to maturity and yields for differing categories of bonds at a particular time.
D) between time to maturity and yields for a particular category of bonds at a particular time.

Question

Quizplus · Accepted Answer

The term structure of interest rates describes the relationship between the time to maturity and the yield for bonds of the same credit quality at a specific point in time.

The Term Structure of Interest Rates Refers to the Relationship