The Term Structure of Interest Rates Is

question 47

Multiple Choice

The term structure of interest rates is:

• A) The relationship between the rates of interest on all securities.
• B) The relationship between the interest rate on a security and its time to maturity.
• C) The relationship between the yield on a bond and its default rate.
• D) All of these.
• E) None of these.

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Definitions:

Radius

A bone in the forearm that extends from the lateral side of the elbow to the thumb side of the wrist.

Clavicle

A slender, curved long bone that connects the sternum and the scapula; also called the collar bone.

Scapula

Also known as the shoulder blade, it is a large, flat triangular bone located in the upper back, connecting the humerus (upper arm bone) with the clavicle (collarbone).

Humerus

The long bone in the upper arm, extending from the shoulder to the elbow.