Yield curve
The yield curve plots yield to maturity against time to maturity for bonds of similar credit quality, usually sloping upward but sometimes inverted ahead of an economic slowdown.
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The yield curve plots yield to maturity against time to maturity for bonds of the same credit quality. A government's bonds yielding 3.2% at one year, 3.8% at five years, 4.3% at ten years and 4.5% at thirty years trace a normal, upward-sloping curve, since investors demand more return for tying up money longer.
Where it fits
TopicTime Value of MoneyAdvancedSubjectCorporate FinanceAdvancedTopicBond & Equity ValuationAdvanced