tutor2u | Fiscal Policy - The Bond Yield Curve

Student Videos

Fiscal Policy - The Bond Yield Curve

Level:
A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 14 Nov 2021

in this short revision video, we look at the economics of the bond yield curve.

The yield curve is a way of comparing rates of return on bonds of differing maturity.

Normally we would expect yields on longer-dated bonds to be higher than for shorter-dated securities – because of the risks of inflation going forward).

There are occasions though when the yield curve can become ‘inverted’ - this means that short term interest rates are greater than on long-dated bonds.

Fiscal Policy - The Bond Yield Curve

Recommended

Exam support for 2022

Online Grade Booster Courses for A-Level Exams in May & June 2022

Exam technique, advance information support, live revision and more from the tutor2u subject specialist teams

Enrol now

© 2002-2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.