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Normal Yield Curve |
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Normal Yield Curve A yield curve that trends upward, indicating that the interest rates for long-term debt securities are higher than short-term debt securities. This is the regular way a yield curve trends because investors demand a higher return for the higher risk of tying up their capital in securities with longer maturities. It is less commonly called a positive yield curve. See also: Negative Yield Curve, Flat Yield Curve. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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