Term Structure of Interest rates The pattern of rates of return for debt securities that differ only in the length of time to maturity. yield to maturity time to maturity(years)
Term Structure of Interest Rates • The pattern of rates of return for debt securities that differ only in the length of time to maturity. yield to maturity time to maturity (years)
Term Structure of Interest rates The yield curve may be downward sloping or inverted" if rates are expected to fall yield to maturity time to maturity (years)
Term Structure of Interest Rates yield to maturity time to maturity (years) • The yield curve may be downward sloping or “inverted” if rates are expected to fall
Term Structure of Interest rates The yield curve may be downward sloping or inverted" if rates are expected to fall yield to maturity time to maturity (years)
Term Structure of Interest Rates yield to maturity time to maturity (years) • The yield curve may be downward sloping or “inverted” if rates are expected to fall
For a Treasury security, what is the required rate of return
For a Treasury security, what is the required rate of return?
For a Treasury security, what is the required rate of return Required rate of s return
For a Treasury security, what is the required rate of return? Required rate of return =