The yield curve is
A)the term structure of interest rates.
B)the relation between maturity and yield of a bond.
C)maturity.
D)both A and B
E) all of the above

Question

Quizplus · Accepted Answer

The yield curve reflects the term structure of interest rates as it shows the relationship between the yield or interest rate of a bond and its maturity. Therefore, both options A and B are correct, making option D the best choice. Option C, maturity, is a component of the yield curve, but it does not encompass the full meaning of the curve. Option E is incorrect as it includes option C, which is not a comprehensive answer.

The Yield Curve Is