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How is yield curve used in finance?

Updated: 4/28/2022
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A yield curve is a graph that shows the relationship between yield and maturity on bonds. The graph plots the time or maturity on the x-axis and the yield on the y-axis. The yield curve will show how the yield on the bond changes with varying maturities.

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Q: How is yield curve used in finance?
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What is the meaning of pure yield curve?

The pure yield curve uses stripped or zero coupon Treasuries.


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