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Normal Yield Curve
Normal Yield Curve
Image 1 A chart showing long-term debt instruments having higher yields than short-term debt instruments. Sometimes referred to as positive yield curve.
Image 2 The reason it is "normal" is because you would expect slightly more risk for holding a bond for a longer period of time because there is great risk of default.


Flat Yield Curve

Inverted Yield Curve

Nominal Yield

Yield

Yield Curve