The relationship among interest rates on bonds with identical default risk, but different maturities, is called...

The relationship among interest rates on bonds with identical default risk, but different maturities, is called the:

A time‑risk structure of interest rates. (incorrect)

B liquidity structure of interest rates (incorrect)

C bond demand curve. (incorrect)

D the liquidity premium curve.

E None of them.

However, over thinking it with D OR E correct answer should be yield curve HELP!

Solutions

Expert Solution

The relationship between interest rate of Bond with different maturity but similar risk is known as term structure of interest rate.

All the other options are not mentioning the term structure of the interest rate so all of the options are false.

Correct answer will be option (E) none of the above.

jeff jeffy answered 2 years ago

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