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Answer to Question #147035 in Economics for juwita

Question #147035
Assume that yields of short term and long term funds are similar. If interest rates are expected to rise, how will this affect the yield curve? Explain.
1
Expert's answer
2020-11-30T16:41:26-0500

A yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. If interest rates are expected to rise, then the yield curve will increase and shift up.


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