The Yield Curve Shows at Any Point in Time

question 29

Multiple Choice

The yield curve shows at any point in time

• A) the relationship between the yield on a bond and the duration of the bond.
• B) the relationship between the coupon rate on a bond and time to maturity of the bond.
• C) the relationship between yield on a bond and the time to maturity on the bond.
• D) All of the options are correct.
• E) None of the options are correct.

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Definitions:

Extra Benefit

The additional advantage or utility gained from consuming one more unit of a good or service.

Specific Product

A distinct good or service that is identifiable and distinct from others due to unique characteristics or features.

Increasing Marginal Opportunity Costs

The principle that as production of a good expands, the opportunity cost of producing an additional unit rises.

Discrimination

The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates, or working conditions even though they have the same abilities, education, skills, and work experience as other workers.