Which one of the following statements is NOT true?
A) The relationship between yield to maturity and marketability is known as the term structure of interest rates.
B) The shape of the yield curve is not constant over time.
C) As the general level of interest rises and falls over time, the yield curve shifts up and down and has different slopes.
D) Yield curves show graphically how market yields vary as term to maturity changes.

Question

Quizplus · Accepted Answer

The relationship between yield to maturity and marketability is not known as the term structure of interest rates. The term structure of interest rates refers to the relation between the yield on a fixed-income security and its time to maturity. Yield curves show the term structure of interest rates graphically.

Which One of the Following Statements Is NOT True