Asked by
Joshua Van Bramer
on Dec 02, 2024Verified
The expectations theory says that the yield curve can slope upward or downward.
Expectations Theory
A theory that explains the term structure of interest rates based on the idea that long-term interest rates are determined by the market's expectations of future short-term rates.
Yield Curve
A graph showing the relationship between bond yields and maturity dates, typically indicating expected interest rate changes.
- Familiarize oneself with the conceptual frameworks and dynamics shaping the structure of interest rates and the progression of yield curves.
Verified Answer
RL
Learning Objectives
- Familiarize oneself with the conceptual frameworks and dynamics shaping the structure of interest rates and the progression of yield curves.