Fixed Income
Normal Yield Curve
Definition
What is Normal Yield Curve?
A yield curveA line showing yields on similar debt securities across different maturities. in which longer maturities generally yield more than shorter maturities.
Example in practice
How This Looks in Practice
Ten-year bonds yield more than one-year bills in a normal curve.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.