Which one of the following statements is NOT true?
A) The relationship between yield and marketability is known as the term structure of interest rates.
B) The shape of the yield curve is not constant over time.
C) As the general level of interest rises and falls over time, the yield curve shifts up and down and has different slopes.
D) Yield curves show graphically how market yields vary as term to maturity changes.

Question

Quizplus · Accepted Answer

The relationship between yield and marketability is not known as the term structure of interest rates. The term structure of interest rates refers to the relationship between interest rates and the time to maturity of debt securities. Yield and marketability are both factors that contribute to the overall value of a security.

Which One of the Following Statements Is NOT True