Question

The treasury yield curve plots the yields on treasury notes and bonds relative to the ____ of those securities.

Answer 1

Answer: Maturity

Explanation:

The treasury yield curve plots the yields on treasury notes and bonds relative to the *maturity " of the securities.

The US treasury yield curve compares the yield of short term treasury bills with that of long term treasury bill notes and bonds. In the US the treasury department issues treasury bills for terms less than one year, for terms of two, three, five and ten years. It also issue bond for 20 to 30 years.

Answer 2

Answer:

The correct answer is maturity.

Explanation:

The yield curve establishes the relationship of two important financial concepts, the yield of a bond and the average duration or term of the total cash flow of the bond, represented graphically. The yield curve is characterized as a temporary structure of the interest rate, that is, how the interest rate is distributed over time depending on the term for the same issuer.