Yield Curve
Graph showing relationships between bond yields and maturities.
Detailed Description
Yield Curve
What does the yield curve represent?
The yield curve represents the relationship between interest rates and the time to maturity of debt securities.
What are the main types of yield curves?
The main types of yield curves are normal, inverted, and flat.
How can monetary policy affect the yield curve?
Monetary policy can influence interest rates, which in turn affects the shape and position of the yield curve.
Why is the yield curve important for investors?
The yield curve helps investors assess economic health and make informed decisions about bond investments.
What are some limitations of the yield curve?
The yield curve may not always accurately predict economic conditions and does not account for credit risk.