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what is the typical relationship among interest rates on three-month Treasury bills, long term Treasury bonds...

what is the typical relationship among interest rates on three-month Treasury bills, long term Treasury bonds and Baa corporate bonds

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Answer #1

The typical interest rates range of a particular country depends on various macro economic factors. All such factors generally drive the value that corporates or govt can pay and would want to pay for their borrowings. If these institutions have no dearth of people giving them loan at a particular interest rate then the interest rate would come down till it finds a balance again between demand and supply. Having said that, short term and longterm rates should move in the same direction albeit at a different rates

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