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The yield curve is the relationship between an interest rate and the time to maturity for a given debt. Typical debts may be U.S. Treasury debt instruments (T-Bills, T-Notes, etc.) or the LIBOR lending rate.
A yield curve is normally upward sloping, where short term lending would pay a lower rate (since it incurs less risk on the part of the borrower) compared to longer term lending (which places more risk on the borrower). In general the longer amount of time the lender loans money, the more that it earns as a result.
However, yield curves -- adjusted daily -- can vary in their shape depending on current economic conditions, long term market outlook, etc.
A yield curve describes the 'yield to maturity' of a collection of similar bonds (rating wise) with different periods to maturity. (src below)
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What are the three theories for describing the shape of the yield curve?
The three theories include the liquidity premium theory, the market segmentation theory, and the expectations hypothesis.
What is the difference between inscribed and circumscribed in integration?
When rectangles are inscribed, they lie entirely inside the area you're calculating. They never cross over the curve that bounds the area. Circumscribed rectangles cross over the curve and lie partially outside of the area. Circumscribed rectangles always yield a larger area than inscribed rectangles.
How the sine curve related to a curve?
Basically, it IS a curve.
Bell-shaped curve used to illustrate data signifies a curve?
It's true: a curve is a curve. Did you really need me to tell you that?
Can you define percent yield in general terms?
% yield is the amount obtained from a reaction divided by the amount that can possibly be obtained times 100.% yield=(actual yield/theoretical yield) * 100%actual yield=the real amount of product that is actually produced in the reaction.theoretical yield=the imaginary amount of product that is likely to form.
