The term structure of interest rates is:
- the relationship among interest rates of different bonds with the same maturity.
- the structure of how interest rates move over time.
- the relationship among the terms to maturity of different bonds.
- the relationship among interest rates across maturities for otherwise similar bonds.
- the relationship among interest rates of different bonds with the same maturity.
Explanation to the above answer:
Generally the term structure of interest rates is The relationship between two variables, years and yield to maturity (holding all else constant). I mean to say it is relationship between the interest rate on a particular security and it’s time to maturity. Here we have been provided the option with relationship among interest rates of different bonds with the same maturity. So option A is correct
