n NISM Certifications
NSM General NISM
Medium

Suppose the 3-month rate is 5.5%, the 1-year rate is 7.5%, and the 10-year rate is 6%, then the shape of the term structure would be ______.

Practice question from NISM Series IV - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Normal

  2. B

    Inverted

  3. C

    Flat

  4. Humped

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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