Which of the following terms is a comparison of market yields on securities,assuming all characteristics except maturity are the same?
A) Credit quality risk
B) Interest rate risk
C) Liquidity of interest rate risk
D) Term structure of interest rates

Question

Quizplus · Accepted Answer

The term structure of interest rates compares the yields on securities with all characteristics being the same except maturity. It shows the relationship between the yields of different maturities and provides insights into the future direction of interest rates. Option A refers to the risk of default by the issuer, option B refers to the risk of changes in interest rates affecting the value of securities, and option C refers to the ease of buying or selling securities without affecting their market value.

Which of the Following Terms Is a Comparison of Market