Structure of interest rates explains why bonds issued by _____ but of _____ sometimes have different yields.
A) the same economic entity, different maturities
B) different economic entities, the same maturities
C) different economic entities, different maturities
D) none of the above.

Question

Quizplus · Accepted Answer

The structure of interest rates, also known as the term structure, explains how bonds issued by the same economic entity but with different maturities can have different yields due to factors like interest rate expectations, inflation, and risk premiums associated with different time horizons.

Structure of Interest Rates Explains Why Bonds Issued by _____