The Term Structure of Interest Rates Refers to

question 70

Multiple Choice

The term structure of interest rates refers to

• A)the variance of the different interest rates available in the economy.
• B)the composition of the market interest rate.
• C)the variation of the market interest rate over the span of one year.
• D)the pattern of interest rates that corresponds to the varying terms to maturity of government securities.
• E)the general observation that the yield on 30- year government bonds is less than the yield on 90- day Treasury bills.

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