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Securities & Markets

Understanding Yield Curve

September 23, 2011
1 min read

The yield curve refers to the relationship between the interest rates and the time to maturity of a debt. For example, if we plot the interest rate offered by U.S. Treasury for different maturity debt, what we will get is the Yield Curve. The yield curve will have the maturity on the X-axis, and interest rates on the Y-axis.

This video explains the yield curve with a simple example.

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