Flat yield curve: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
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''Statistical analysis.'' | ''Statistical analysis.'' | ||
The relationships between the zero coupon yield, the forward yield, and the par yield depend on the basis on which the yields are quoted. When all rates are quoted on an annual effective rate basis and the annual effective yield curve is flat, the zero coupon yield, the forward yield and the par yield are all the same. | This means that the yield is the same for all maturities of funds. | ||
For example the 1 year yield = 2 year yield = 3 year yield, and so on. | |||
The relationships between the zero coupon yield, the forward yield, and the par yield depend on the basis on which the yields are quoted. | |||
When all rates are quoted on an annual effective rate basis and the annual effective yield curve is flat, the zero coupon yield, the forward yield and the par yield are all the same. | |||
== See also == | == See also == | ||
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* [[Rising yield curve]] | * [[Rising yield curve]] | ||
* [[Zero coupon yield]] | * [[Zero coupon yield]] | ||
Revision as of 13:58, 27 August 2013
Statistical analysis.
This means that the yield is the same for all maturities of funds.
For example the 1 year yield = 2 year yield = 3 year yield, and so on.
The relationships between the zero coupon yield, the forward yield, and the par yield depend on the basis on which the yields are quoted.
When all rates are quoted on an annual effective rate basis and the annual effective yield curve is flat, the zero coupon yield, the forward yield and the par yield are all the same.
