The Yield Curve: CNBC Explains
Yield curves help investors understand the relationship between bonds of differing time horizons to maturity. Understanding the yield curve is important to investors because easily comparing yields allows them to understand their return on investment and make investment decisions based upon these future payouts. Salman Khan of the Khan Academy gives a basic overview of how yield curves are constructed.
From this video, you’ll understand:
- What the term “yield curve” means
- How yield curves are constructed