Structure of interest rates is
A)the relationship between the rates of interest on all securities.
B)the relationship between the interest rate on a security and its time to maturity.
C)the relationship between the yield on a bond and its default rate.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

The structure of interest rates refers to the relationship between the interest rate on a security and its time to maturity. In other words, it describes how the interest rates vary for different maturities, with longer-term securities typically having higher interest rates than shorter-term securities. The other options, while related to interest rates, do not describe the structure of interest rates.

Structure of Interest Rates Is