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The Term Structure of Interest Rates

Question 132

Multiple Choice

The term structure of interest rates:


A) Compares the real rate of return on coupon bonds for various maturities.
B) Compares the nominal versus the real rates of return over time.
C) Reflects the nominal interest rates on default-free, pure discount bonds.
D) Reflects the difference between the actual time value of money and the rate of return on Canadian Government securities.
E) Is the basic real rate of return which is held constant over time.

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