Yield curve

A yield curve shows the relationship between the yield on securities and their maturities (how long it is until they can be redeemed at their face value).

Updated March 2022

Bonds are IOUs. You lend the issuer money for a set period, in exchange for a regular interest payment (coupon), and get your money back when the bond “matures”. Once issued, bonds trade on the open market, which means the price can rise or fall depending on the appeal of the coupon, and the issuer’s creditworthiness.

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