Final answer:
The term that compares market yields on securities with all same characteristics except maturity is the term structure of interest rates. Option D
Step-by-step explanation:
The term that represents a comparison of market yields on securities, assuming all characteristics except maturity are the same, is D. term structure of interest rates. This term is directly related to the concept of interest rate risk, which is the risk that interest rates will change unfavorably affecting the value of fixed-income securities.
The term structure of interest rates is often visualized in a graphical format known as the yield curve. It shows the relationship between securities' yields and their maturities, providing insights into the future movements of interest rates and economic activity.
Similarly, the liquidity of an investment refers to how easily it can be bought or sold. Maturity date indicates when a bond issuer must repay the bond's principal. A municipal bond is issued by cities, whereas a corporate bond is issued by corporations to raise capital, and a savings bond is a government bond that offers a safe way to save money. Option D