A graphic portrayal of the relationship between the yields to maturity of instruments of a given class and the terms to maturity of those instruments. See also term structure of interest rates.
Yield Curve Shifts
Changes in the shape of the yield curve. See parallel shifts and non-parallel shifts.
Yield Spread
The difference of yield between various securities, of similar maturity and other features, but with different credit qualities (ratings).
Yield to maturity
Also called yield. The discount rate that equates the present value of the cash flow stream associated with an instrument and the current price of that instrument. This calculation assumes that cash flows can be reinvested to earn the same rate.
