Yield Curve 0.060 0.050 0.040 0.030 Interest Rate 0.020 0.010 0.000 Years to Maturity The bond market has given us the above yield curve. This curve indicates that the bond market participants expect the following one-year interest rates to prevail in the future: Expected one-year rate one year hence = Expected one-year rate two years hence = Expected one-year rate three years hence =