is an example of US Treasury yields for various maturities:
6 month: 2.25%
1 year: 2.37%
2 year: 3.15%
5 year: 5.02%
10 year: 5.24%
The curve indicated by these yields is called _____.
The correct answer is b.
A normal yield curve chart shows long-term debt instruments having higher yields than short-term debt instruments. Sometimes referred to as positive yield curve. The reason it is "normal" is because you would expect slightly more risk for holding a bond for a longer period of time because there is great risk of default.
An inverted yield curve is when long-term debt instruments that have lower yields than short-term debt instruments.
Find out more about the yield curve and yield curve formations, what yield curves measure and the three main types of yield ...
Find out what an inverted yield curve represents, how it has performed as a leading indicator and why it appears to hold ...
Understand the difference between the term structure of interest rates and a yield curve, if any. Learn what the yield curve ...
Understand what the current yield curve represents, and learn how market analysts commonly interpret various changes in the ...
Learn about the yield curve, and discover why this chart is an important economic indicator. How do Treasury bond yields ...
Learn why economists believe the term structure for interest rates reflects investor expectations for future interest rates ...
A yield curve in which short-term debt instruments have a lower ...
An interest rate environment in which long-term debt instruments ...
The relationship between interest rates or bond yields and different ...
A line that plots the interest rates, at a set point in time, ...
A yield curve in which there is little difference between short-term ...
The point on the yield curve indicating the year in which the ...