The term structure of interest rates or yield curve is the pattern of interest rate yields for debt securities that are similar in all respects except for differences in

Select one:

a. tax status

b. liquidity

c. risk of default

d. term or maturity

Interest rates are set by

Select one:

a. the forces of supply and demand in the market for debt

b. the Federal Reserve, the nation's central bank which regulates the banking industry

c. senior banking executives on the basis of the funds banks have available to lend

d. the president and his council of economic advisors

The increased volatility of longer term bonds in response to interest rate movements is reflected in the

Select one:

a. pure interest rate

b. default risk premium

c. liquidity risk premium

d. maturity risk premium