The term structure of interest rates plots yield versus:
A) All maturities of a particular risk class of bonds at a point in time
B) A single maturity of a particular risk class of bonds over time
C) All maturities of one category of bonds (e.g. all corporate bonds) at a point in time
D) All risk classes of bonds at a point in time
E) All risk classes of a single maturity over time

Question

Quizplus · Accepted Answer

The term structure of interest rates, also known as the yield curve, plots the yields of bonds with different maturities but of the same risk class at a specific point in time.

The Term Structure of Interest Rates Plots Yield Versus