Holding other factors such as risk constant, the relationship between the maturity and annualized yield of securities is called the
A)term structure of interest rates.
B)default structure of interest rates.
C)liquidity structure of interest rates.
D)tax structure of interest rates.
E)none of the above

Question

Quizplus · Accepted Answer

The relationship between the maturity and annualized yield of securities is known as the term structure of interest rates. This relationship reflects the market's expectation of future interest rates and is used to price various financial instruments. Other factors such as credit risk and liquidity can also impact interest rates, but the term structure provides insight into the general trend of interest rates over time.

Holding Other Factors Such as Risk Constant, the Relationship Between