Term structure refers to:
A) how interest rates vary over different structures of bonds.
B) how interest rates vary over different structures of corporate securities.
C) how interest rates vary over time with otherwise identical bonds.
D) the maturity dates of a bond issue.

Question

Quizplus · Accepted Answer

Term structure refers to the relationship between interest rates (or yields) and the maturity of otherwise identical debt securities. It illustrates how the yield of bonds changes for different lengths of time until maturity, assuming all other characteristics such as credit quality are constant.

Term Structure Refers To