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A yield curve is a graphical representation of the relationship between the yields and the maturities of securities issued by a given borrower in a
A yield curve is a graphical representation of the relationship between the yields and the maturities of securities issued by a given borrower in a given currency on a given date. The mathematical relationship between these two variables, the yield and the maturity, is called the term structure of interest rates, and the graphical relationship (plotted curve) is called the yield curve. A yield curve can exhibit 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 Description of the Yield Curve 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 slope. Short-term rates are greater than long-term rates. Inverted yield curve Humped yield curve Flat yield curve
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