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Positive Yield Curve

Positive Yield Curve Definition

This occurs when long-term interest rates have higher yields than short-term interest rates.  A positive yield curve illustrates the fact that long-term investors take a greater risk and are therefore compensated by a larger yield.  A positive relationship between interest rates is displayed graphically, with an upward sloped curve. 


Additional meaning of Positive Yield Curve:

Also referred to as Normal Yield Curve.

 








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