The term structure refers to the relationship between interest rates and the time to maturity of debt securities, such as bonds. It illustrates how interest rates vary for different maturities, helping investors understand the cost of borrowing over time. The term structure is often depicted using a graph called the yield curve, which shows the interest rates on bonds of varying maturities. The shape of the yield curve can indicate economic conditions. A normal upward-sloping curve suggests that longer-term bonds have higher yields due to increased risk over time. Conversely, an inverted yield curve, where short-term rates are higher than long-term rates, may signal an impending recession, as seen in historical trends involving economic cycles and financial markets.