Multiple Choice
The term structure of interest rates refers to
A) the general observation that the yield on 30-year government bonds is less than the yield on 90-day Treasury bills.
B) the variance of the different interest rates available in the economy.
C) the composition of the market interest rate.
D) the variation of the market interest rate over the span of one year.
E) the pattern of interest rates that corresponds to the varying terms to maturity of government securities.
Correct Answer:
Verified
Correct Answer:
Verified
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