The term structure of interest rate can be defined as the graphical representation that depicts the relationship between interest rates (or yields on a bond) and a range of different maturities. The graph itself is called a “yield curve.” The term structure of interest rates plays an important part in any economy by predicting the future trajectory of rates and facilitating a quick comparison of yields based on time.
Learn how to apply the basic tools & convexity for managing the interest rate risk of a bond portfolio with Wagons Training Program
Click on the link below to register 👇
Your email address will not be published. Required fields are marked *