The term structure of interest rates assumes that
A)the risk of all assets is the same.
B)the time to maturity for all assets is the same.
C)the coupon rate of all assets is the same.
D)The market value of assets is the same.
E)All of the above.

Question

Quizplus · Accepted Answer

The term structure of interest rates, also known as the yield curve, assumes that the risk of all assets is the same, allowing for the comparison of interest rates across different maturities without considering risk differences.

The Term Structure of Interest Rates Assumes That