The term structure of interest rates represents the relationship between which of the following?
A. Nominal rates on risk-free and risky bonds
B. Real rates on risk-free and risky bonds
C. Nominal and real rates on default-free, pure discount bonds
D. Market and coupon rates on default-free, pure discount bonds
E. Nominal rates on default-free, pure discount bonds and time to maturity
Ans: E. Nominal rates on default-free, pure discount bonds and time to maturity
Business
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