Question 629 yield curve, forward interest rate
Which of the following statements about yield curves is NOT correct?
(a) A yield curve graph shows bonds' spot yields at different maturities. The y-axis shows spot yields and the x-axis shows the bonds' times to maturity.
(b) A yield curve is a graph of forward rates.
(c) Normal yield curves slope upwards, they have a positive gradient.
(d) A yield curve is 'as at' a certain date, it's a snapshot in time.
(e) Every point on the yield curve corresponds to a different bond with a different maturity.
Copyright © 2014 Keith Woodward