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2. What is the term structure of interest rates? What are some of the theories about...

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Finance

2. What is the term structure of interest rates? What are someof the theories about the term structure and what do they implyabout the shape of the term structure. What other things affect thedifferent interest rates observed in the real world?

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Term structure of interest rates is the relationship between the yields on riskfree bonds and different maturities In other words the term structure of interest rates is a a table or graph containing the riskfree rates or yields for bonds of all maturities from very shortterm bonds to verylong term bonds A graphical    See Answer
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2. What is the term structure of interest rates? What are someof the theories about the term structure and what do they implyabout the shape of the term structure. What other things affect thedifferent interest rates observed in the real world?

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