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The Yield Curve A)is a Graphical Depiction of Term Structure of Interest Rates

Question 8

Multiple Choice

The yield curve
 Year  1-Year Forward Rate 15.8%26.4%37.1%47.3%57.4%\begin{array} { l | l } \hline \text { Year } & \text { 1-Year Forward Rate } \\\hline 1 & 5.8 \% \\\hline 2 & 6.4 \% \\\hline 3 & 7.1 \% \\\hline 4 & 7.3 \% \\\hline 5 & 7.4 \% \\\hline\end{array}


A) is a graphical depiction of term structure of interest rates.
B) is usually depicted for U.S.Treasuries in order to hold risk constant across maturities and yields.
C) is usually depicted for corporate bonds of different ratings.
D) A and B.
E) A and C.

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