Definition of yield curve

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TeachMeFinance.com - explain yield curve



yield curve -- The relationship formed by plotting the yields of otherwise comparable fixed-income securities against their terms to maturity. Typically, yields increase as maturities lengthen. The rate of that increase determines the "steepness" or "flatness" of the yield curve. Ordinarily, a steepening (or flattening) of the yield curve is taken to suggest that short-term interest rates are expected to rise (or fall).

another definition...

yield curve -- a chart in which yield levels are plotted on the vertical axis and the terms to maturity of debt instruments of similar creditworthiness are plotted on the horizontal axis.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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