Section 2
Additional Detail on Interest Rates
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3 concepts
The Yield Curve
A yield curve shows the relation between interest rate levels (or cost of borrowing) and the time to maturity.
Using the Yield Curve to Estimate Interest Rates in the Future
Yield curves on bonds and government provided securities are correlative, and are useful in projected future rates.
Macroeconomic Factors Influencing the Interest Rate
Taylor explained the rule of determining interest rates using three variables: inflation rate, GDP growth, and the real interest rate.