DEFINITION of 'Par Yield Curve'
A graph of the yields on hypothetical Treasury securities with prices at par. On the par yield curve, the coupon rate will equal the yieldtomaturity of the security, which is why the Treasury bond will trade at par.
INVESTOPEDIA EXPLAINS 'Par Yield Curve'
Deriving a par yield curve is a step toward creating a theoretical spot rate yield curve, which is then used to more accurately price a couponpaying bond. A method known as bootstrapping is used to derive the arbitragefree forward interest rates.
RELATED TERMS

OffTheRun Treasuries
All Treasury bonds and notes issued before the most recently ... 
Yield Curve
A line that plots the interest rates, at a set point in time, ... 
OnTheRun Treasuries
The most recently issued U.S. Treasury bond or note of a particular ... 
OnTheRun Treasury Yield Curve
The U.S. Treasury yield curve derived using ontherun treasuries. ... 
Bootstrapping
1. A procedure used to calculate the zerocoupon yield curve ... 
Surrender Period
The amount of time an investor must wait until he or she can ...
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