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.
- On the one hand, lower interest rates at all maturities along the yield curve would increase the present value of future cash flows, increasing the incentive to invest.
- Why not take full advantage of a steep yield curve by leveraging mortgage securities.
- The yield curve for U.S. Treasury securities implies a forecast for future federal funds rates.
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