Yield Curve

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what is a yield curve? a curve on a graph in which the yield of fixed-interest securities is plotted against the length of time they have to run to maturity.
what is a flat yield curve? this is when the short term and long term rates are the same
______ is a yield curve formed when the federal reserve board tightens credit in an over heated economy Inverted yield curve
What is the economic situation if the yield curve spread between corporate bonds and government bonds is widening? a recession is expected. Investors have chosen the safety of government bonds over higher corporate yields, which occurs when the economy slows down.
What is the economic situation if the yield curve between corporate bonds and government bonds is narrowing? an economic expansion is expected and investors are willing to take risks. Also investors may be looking to sell government bonds to buy higher-yielding corporates
What is the most common method to constructing a yield curve? use bonds of a single issuer over varying maturities. Specifically, most rely on the curve drawn when plotting yields on US Treasury securities, starting with the 90-day T-bill and ending with anything from the 10-year note to the 30-year bond.

what is a yield curve?

what is a flat yield curve?

______ is a yield curve formed when the federal reserve board tightens credit in an over heated economy

What is the economic situation if the yield curve spread between corporate bonds and government bonds is widening?

What is the economic situation if the yield curve between corporate bonds and government bonds is narrowing?

What is the most common method to constructing a yield curve?

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