Asked by Femina Asmani on Apr 28, 2024
Verified
Provide an appropriate definition of a term structure of interest rates.
Term Structure
Pertains to the connection between interest rates or yields on bonds and varying durations or maturities.
Interest Rates
The percentage charged on the total amount of borrowed money or paid on deposited funds.
- Gain an understanding of the idea and impacts related to the term structure of interest rates.
Verified Answer
DG
Danny GalvanApr 30, 2024
Final Answer :
The relationship between nominal interest rates on default-free, pure discount securities and time to maturity; that is, the pure time value of money.
Learning Objectives
- Gain an understanding of the idea and impacts related to the term structure of interest rates.
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