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The Term Structure of Interest Rates

Question 52

Multiple Choice

The term structure of interest rates:


A) plots interest rates against bond ratings.
B) is just another name for the yield curve.
C) ignores interest rate risk premiums while the Treasury yield curve includes those premiums.
D) ignores both inflation and interest rate risk premiums.
E) is based on pure discount bonds while the Treasury yield curve is based on coupon bond yields.

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