The term structure of interest rates 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, typically represented by the yield curve. This curve can be upward sloping, flat, or downward sloping, indicating expectations about future interest rates and economic conditions. Factors influencing the term structure include inflation expectations, economic growth, and monetary policy set by central banks like the Federal Reserve. Investors use the term structure to assess risk and make informed decisions about borrowing and investing over various time horizons.