Yield Curve

Business / Taxes / Yield Curve: A yield curve shows the relationship between the yields on short-term and long-term bonds of the same investment quality. Since long-term rates are characteristically higher than short-term rates, a yield curve that confirms that expectation is described as positive. In contrast, a negative yield curve occurs when short-term rates are higher. A flat or level yield curve occurs when the rates are substantially the same.

Other Words for Yield

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
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Negative Yield Curve

Business / Finance / Negative Yield Curve: When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing. MORE

Inverted Yield Curve

Business / Finance / Inverted Yield Curve: When short-term interest rates are higher than long-term rates. Antithesis of positive yield curve. MORE

Yield Curve Option-Pricing Models

Business / Finance / Yield Curve Option-Pricing Models: The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991) finds that the invers MORE

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