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A yield curve is a graphical representation of the relationship between the yields and the maturities of securides issued by a given borrower in a
A yield curve is a graphical representation of the relationship between the yields and the maturities of securides issued by a given borrower in a given currency on a given date. The mathematical relationship between these two variables, the yied and the maturity, is cailed the term structure of interest rates, and the graphical relationship (plotted curve) is called the yield curve. A yield curve can exthibit a variety of shapes, and the general shapes have been given a specific name. Identify the name of the yield curve that matches the pattern described as follows: Name Given to Describe the Yield Curve Description of the Yield Curve The yield curve exhibits an upward-sloping path. Short-term and long-term (for example, 1-year and 30-year) rates are significantly less than intermediate-term (for example, 10-year) rates. The yield curve exhibits a zero siope. Short-term rates are greater than long-term rates. Humped yield curve Flat yield curve Inverted yield curve Normal yield curve Continue without saving 2 5
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