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?

What variable is measured on the horizontal axis of the yield curve?

Years to maturity of the bonds.
Yield of the bonds.
Duration of the bonds.
Par value of the bonds.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (A) is correct. The term structure of interest rates is the relationship between yield to maturity and time to maturity. The yield curve is graphed with interest rate as the vertical axis and years to maturity as the horizontal axis.

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