Loading...
CFA Level 1
Fixed Income

Identifying a Normal Yield Curve Scenario

Easy Fixed Income Valuation Term Structure Of Interest Rates

The term structure of interest rates illustrates the relationship between interest rates (or bond yields) and different maturities. It is often depicted in a yield curve, which can take various shapes depending on market conditions. A normal upward-sloping yield curve indicates that longer maturities have higher yields, while an inverted curve suggests that shorter maturities yield more than longer ones.

In light of this information, which of the following scenarios typically indicates a normal yield curve in the market?

Hint

Submitted9.9K
Correct9.3K
% Correct94%