A Plot of the Interest Rates on Default-Free Government Bonds

question 97

Multiple Choice

A plot of the interest rates on default-free government bonds with different terms to maturity is called

• A)a risk-structure curve.
• B)a default-free curve.
• C)a yield curve.
• D)an interest-rate curve.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values; higher values indicate greater variability.

Index Funds

Index funds are a type of mutual fund or ETF with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500.

PHStat

A software add-in for Microsoft Excel that enhances the statistical functions of Excel, commonly used for statistical analysis and education.

Coefficient Of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, expressed as a ratio of the standard deviation to the mean.