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A Few Related Terms

Yield
Yield-to-maturity
Maturity
Coupon

Yield Curve
Term category: Bonds, Economics
In 10 words or less: A graphical representation of the yields for various maturities.

Definition: It's a graphical representation of the yields on bonds with various maturities. It's gradually sloping upwards.

More in depth: The idea is that bonds with longer maturities pay higher interest rates. When bonds with shorter maturities pay higher interest rates, the curve is sloping downward. This is called an "inverted yield curve." This isn't a very common occurrence.

An example:


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Another Great Site!
Be sure to head over to TeenAnalyst for lots of great investment articles!
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Related Books

Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris
The Bond Book by Annette Thau
How the Bond Market Works by Robert Zipf
Beating the Dow with Bonds By Michael B. O'Higgins

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