Business / Taxes / Level Yield Curve: A level yield curve results when the interest rate on short-term US Treasury issues is essentially the same as the rate on long-term Treasury bonds. You create the curve by plotting a graph with rate on the vertical axis and maturity date on the horizontal axis and connecting the dots. In most periods, the rate on long-term bonds is higher and the yield curve is positive because investors demand more for tying up their money for a longer period. There are also times, when interest rates seems to be on the upswing, that the pattern is reversed and the yield curve is negative, or inverted.
Level Noun Synonyms: horizontal, prone, supine
Level Verb Synonyms: aim, point, draw a bead, direct, train, focus
Level Adjective Synonyms: even, smooth, plane, uniform, plain, flat, flush, straight, true
Yield Conjunction Synonyms: return, production, output, revenue, takings, gate, earnings, income, proceeds, profit, gain
Yield Adverb Synonyms: surrender, give up (the fight or struggle), give in, knuckle under, submit, cede, cry quits, throw in the towel or the sponge, capitulate, succumb, raise the white flag
Business / Finance / Yield Curve: Applies mainly to convertible securities. Difference in current yield between the convertible and the underlying common. MORE