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:

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).

Chattels

Tangible, movable personal property that can be measured and weighed; also known as goods.

Fixtures

Items that are attached to a property in such a way that they become part of the property and cannot be removed without permission.

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.