The Term Structure of Interest Rates

question 132

Multiple Choice

The term structure of interest rates:

• A) Compares the real rate of return on coupon bonds for various maturities.
• B) Compares the nominal versus the real rates of return over time.
• C) Reflects the nominal interest rates on default-free, pure discount bonds.
• D) Reflects the difference between the actual time value of money and the rate of return on Canadian Government securities.
• E) Is the basic real rate of return which is held constant over time.

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