The relationship between nominal interest rates on default-free, pure discount securities and the time to maturity is called the:

A) Liquidity effect.
B) Fisher effect.
C) Term structure of interest rates.
D) Inflation premium.
E) Interest rate risk premium.

Term Structure

The relationship between interest rates or yields and different terms or maturities for comparable debt instruments.

Interest Rates

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets.

Nominal Interest Rates

Interest rates that have not been adjusted for inflation, reflecting the rate of interest paid by borrowers or earned by investors.