Flat Yield Curve
Flat Yield Curve is a yield curve offering the same yield for short term and long term bonds.
When a 3 years bond offers 4% yield and the 15 years bond offers 4,2% yield, that yield curve is called “flat.”>br>
Of course, because of risk reduction, in this case it is always better to hold the short term bond.
| Related Terms: Yield Curve |
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