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Which of the following statements about term structure is TRUE? Term structure captures the relationship between interest rate and default risk. Term structure is always
Which of the following statements about term structure is TRUE?
Term structure captures the relationship between interest rate and default risk.
Term structure is always upward sloping.
Real rate, inflation premium, and interest rate risk premium are the three components that determine the term structure.
Term structure is constructed using the yields on zero coupon corporate bonds.
Term structure never changes throughout the time.
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