The term structure is often based on rates of return or yields offered by ________ which are ________ issued by the U.S.Treasury with different maturities.
A) Treasury securities; mutual fund securities
B) Treasury securities; equity securities
C) Treasury securities; debt securities
D) None of the above.

Question

Quizplus · Accepted Answer

The term structure is based on the yields of Treasury securities, which are debt securities issued by the U.S. Treasury with different maturities. Mutual fund securities and equity securities are not typically used as a basis for the term structure.

The Term Structure Is Often Based on Rates of Return