The relationship between yield and maturity of the same type of security is known as the
A) term structure of interest rates.
B) risk-reward structure of interest rates.
C) asset duration structure of interest rates.
D) market structure of interest rates.

Question

Quizplus · Accepted Answer

The relationship between yield and maturity of the same type of security is known as the term structure of interest rates. This term structure provides a graphic representation of the yields available for bonds or government securities of different maturities. It helps to understand the prevailing interest rate environment and provides important information for investors, financial analysts, and policymakers. The other options, such as risk-reward structure, asset duration structure, and market structure, do not accurately describe the relationship between yield and maturity of the same type of security.

The Relationship Between Yield and Maturity of the Same Type