The term structure of interest rates is the relationship among the interest rates offered on securities of different maturities.

Question

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This is the correct definition of the term structure of interest rates. It describes how interest rates vary across different maturities of debt securities, such as bonds or Treasury bills. The term structure can be upward sloping (long-term rates are higher than short-term rates), downward sloping (long-term rates are lower than short-term rates), or flat (all rates are similar across maturities). Understanding the term structure can be helpful in making investment and borrowing decisions.

The Term Structure of Interest Rates Is the Relationship Among