Multiple Choice
The risk structure of interest rates refers to
A) the amount of additional interest necessary to compensate savers for the greater risk of default on some bonds.
B) the relationship among the interest rates on similar bonds with different maturities.
C) the relationship among the interest rates on bonds with the same maturity.
D) the amount of additional interest necessary to compensate savers for the lesser liquidity of some bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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