Make whole and Negative yield curve: Difference between pages

Revision as of 14:20, 23 October 2012

A situation in which market interest rates for longer term funds are lower than those for shorter maturities.

Also known as an Inverse yield curve.

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-''Securities''.
+A situation in which market interest rates for longer term funds are lower than those for shorter maturities.
-To make whole is the action of the issuer of security, on early redemption, of calculating and paying a redemption value calculated at the government bond yield.
-The presence of a make whole clause, under which it is mandatory for an issuer to make whole in this way, potentially makes it prohibitively expensive for the issuer to take an early redemption.
+Also known as an Inverse yield curve.
 == See also ==
-* [[Issuer]]
+* [[Inverse yield curve]]
-* [[Make whole clause]]
+* [[Yield curve]]
-* [[Security]]
-[[Category:Accounting,_tax_and_regulation]]
-[[Category:Corporate_financial_management]]