Term Structure Of Interest Rates

What does it Mean? A yield curve displaying the relationship between spot rates of zero-coupon securities and their term to maturity.

Term Structure Of Interest Rates
Investopedia Says... The resulting curve allows an interest rate pattern to be determined, which can then be used to discount cash flows appropriately. Unfortunately, most bonds carry coupons, so the term structure must be determined using the prices of these securities. Term structures are continuously changing, and though the resulting yield curve is usually normal, it can also be flat or inverted.

Terms Related Links

Coupon
Discounted Cash Flow - DCF
Heath-Jarrow-Morton (HJM) Model
Interest Rate
Interpolated Yield Curve
Liquidity Preference Theory
On-The-Run Treasury Yield Curve
Spot Price
Spot Rate
Yield Curve

Terms Related Links
Advanced Bond Concepts: Term Structure of Interest Rates - The yield curve is a common bond valuation method. Learn more about it here.

Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.

Forces Behind Interest Rates - Get a deeper understanding of the importance of interest rates and what makes them change.

It's In Your Interest - Discover the theoretical relationship between interest rates and stock prices.

Contango Vs. Normal Backwardation - Learn about the futures curve and what its shape means for hedgers and speculators.

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