What Is the Yield Curve?
The video says the curve shows what bonds of different lengths pay, side by side (Treasury par yield curve description).
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1.What does the yield curve show?
The video says the curve shows what bonds of different lengths pay, side by side (Treasury par yield curve description).
2.What is a bond's maturity?
The video defines the yield as the yearly return and the maturity as the day the bond is repaid.
3.In a made-up example, one year pays 2 percent, five years 3 and ten years 4. What shape is this curve?
Going up means longer loans pay more, which the video calls a normal curve (worked example).
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Sources (4)
- U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates (Textansicht July 2023)
- Federal Reserve Bank of San Francisco, Economic Letter 2018-20 (27.8.2018), Michael Bauer / Thomas Mertens, Information in the Yield Curve about Future Recessions
- Eigene Berechnung (Python/
- U.S. Department of the Treasury: Daily Treasury Par Yield Curve Rates 2023 (CSV
Education only. Not financial advice.