Yield Curve
Yield Curve
DEFINITION
A Yield Curve is the plotting on a graph, the interest rates and the interest changes over a period of time. The most popular graphs are plotted from three months to thirty years. Graphs are created to determine future interest rates. The three types of yield curves show Normal, Inverted or Flat. The normal yield curve indicates economic expansion, the inverted yield curve indicates a recession and the flat yield curve indicates no growth and no investment incentives.
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