Understanding the Term Structure of Interest Rates

In the context of fixed income investment, the term structure of interest rates is a crucial concept that describes the relationship between interest rates and different terms to maturity. A normal yield curve typically slopes upwards, indicating that longer-term bonds have higher yield rates compared to short-term bonds. However, variations can occur based on market perceptions of future interest rates, inflation, and economic activity.

Which of the following statements correctly describes a characteristic of the term structure of interest rates?