The Yield Curve Shows

question 81

Multiple Choice

The yield curve shows

• A)the yields on stocks of different maturities.
• B)the interest rates on bonds of different maturities.
• C)the yields on stocks with differing default risk.
• D)the yields on bonds with differing default risk.

---

Definitions:

Degrees of Freedom

The number of independent values or quantities which can vary in the analysis without violating any constraints.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often representing the number of values that are free to vary.

Test Statistic

A calculated value used in statistical testing to determine whether to reject the null hypothesis.

P-Value

The probability of observing test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.