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TERM STRUCTURE OF INTEREST RATES (also called YIELD CURVE)

TERM STRUCTURE OF INTEREST RATES (also called YIELD CURVE). A PLOT OF YIELD TO MATURITY VS. MATURITY. EXPECTATIONS THEORY OF TERM STRUCTURE. Y n = the nominal bond yield for a bond covering n years r n = the expected "forward" yield for a one year bond covering the one year period n .

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Nominal long bond yield - PowerPoint PPT Presentation

TERM STRUCTURE OF INTEREST RATES (also called YIELD CURVE)