With a normal yield curve,
bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.
Not exact matches
As I mentioned at the beginning of this article, a
bond is
essentially a contract between the issuer and the
buyer.
These may be
bonds or other kinds of securities and are
essentially a small loan that the debt issuer takes out from the security
buyer.