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Business LibreTexts

6: The Economics of Interest-Rate Spreads and Yield Curves

  • Page ID
    695
  • CHAPTER OBJECTIVES

    By the end of this chpter, students should be able to:

    • Define the risk structure of interest rates and explain its importance.
    • Explain flight to quality.
    • Define the term structure of interest rates and explain its importance.
    • Describe a yield curve and explain its economic meaning.