The yield curve shows the rates that a __________ will pay for various maturity ranges.
A) Large corporation
B) Municipal government
C) Bank's best customer
D) High-risk borrower
E) Default-free borrower

Question

Quizplus · Accepted Answer

The yield curve typically shows the rates that a default-free borrower, such as the U.S. government, will pay for various maturity ranges. This is because the yield curve is often used as a benchmark for other interest rates in the economy, reflecting the minimum risk premium for lending money over different time periods.

The Yield Curve Shows the Rates That a __________ Will