Economics Risk And Return Questions
The yield curve is a graphical representation of the interest rates on debt for a range of maturities. It shows the relationship between the interest rate (or cost of borrowing) and the time to maturity of the debt. The yield curve is typically upward sloping, indicating that longer-term debt carries higher interest rates compared to shorter-term debt. However, it can also be flat or inverted, depending on market conditions and expectations. The yield curve is an important tool for investors and economists to assess the overall health of the economy and make predictions about future interest rates and economic conditions.