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Question 8 of 10 Next QuestionUnsaved change Moving to the next question prevents changes to this answer.
Which one of the following statements is true?
A yield curve shows the term structure of interest rates for comparable bonds with the same maturities.
Longer-dated bonds have a lower interest rate than the shorter-dated bonds.
The relationship between interest rates and bond prices is positive.
The relationship between the expected rate of return and risk is negative.
All of the provided statements are false.
A yield curve shows the term structure of interest rates for comparable bonds with the same maturities.
This statement is true. A yield curve plots the interest rates of bonds with different maturities against their respective time to maturity.