The term structure of interest rates is generally defined with respect to yields on which securities?
A) Commercial paper
B) Corporate bonds
C) Government securities
D) State securities

Question

Quizplus · Accepted Answer

The term structure of interest rates is typically defined with respect to yields on government securities, such as Treasury bonds or notes. These securities are often seen as the benchmark for interest rates in the market, and their yields are frequently used in calculating other financial indicators. While commercial paper and corporate bonds may be relevant to interest rate analysis in certain contexts, they are not generally used as the basis for measuring the term structure of interest rates. State securities, meanwhile, are not typically viewed as a major player in the national interest rate market.

The Term Structure of Interest Rates Is Generally Defined with Respect