EXTRA CREDIT 1

EXTRA CREDIT 1 - the bonds, which means people who by...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Treasuries Yield (%) 0.03 0.05 0.11 0.17 0.39 0.69 1.53 2.23 2.93 4.18 What is the shape of the yield curve?  What implications does this have for the economy? BONDS, RATES & CREDIT MARKETS OVERVIEW 1-Month Bill* 3-Month Bill* 6-Month Bill* 1-Year Note* 2-Year Note* 3-Year Note* 5-Year Note* 7-Year Note* 10-Year Note* 30-Year Bond* The yield curve is a increasing line, which means the longer the bond, the higher the yield rate. Inadditio becomes steeper as the time of bone increases. From the standpoint of economy, the yield rate of bond
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the bonds, which means people who by longer-life bond will get more many back in the future. Also this securities are more risky, but investors can get more benifit for taking the risks to invest in these financia 1-Month Bill* 6-Month Bill* 2-Year Note* 5-Yea 0.5 1 1.5 2 2.5 3 3.5 4 4.5 RATES & CREDIT MA on, the slope of the graph ds is corelated to the length of situation imply that Long-term al products. ar Note* 10-Year Note* ARKETS OVERVIEW Yield (%)...
View Full Document

This note was uploaded on 09/25/2011 for the course BMGT 220 taught by Professor Bulmash during the Spring '08 term at Maryland.

Page1 / 2

EXTRA CREDIT 1 - the bonds, which means people who by...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online