Yield Curve

This refers to the line plotting interest rates, at a point in time, of bonds which have equal credit quality, but differing maturity dates.

Yield Curve is used as a benchmark against which to compare other debt facilities, e.g. mortgages, bank loan rates etc. The shape of the curve reflects the level of perceived risk in the future with significant differences between short and long term rates indicating the greatest level of risk.

Yield Curve Normal Graph

Yield Curve is a term normally found in financial management and business economics.

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