Yield curves are graphs that show the yields for different
maturities of a particular bond, for example, Government of Canada bonds.
Not exact matches
For a
bond fund, consider also the average
maturity of bonds held in the
particular fund.
Rather than selecting two
particular maturities, one can also consider more broadly the overall shape
of the yield curve, which plots the interest rates on
bonds of different
maturities.
Each BofA Merrill Lynch Index, such as «BofA Merrill Lunch US High Yield BBB Effective Yield ©» includes all
bonds of a
particular risk rating group with different
maturities.
The most recently auctioned U.S. Treasury
bond of a
particular maturity.
The portfolio might invest in a
particular type
of bond (government, municipal, mortgage or high - yield) or a
particular maturity range (short - term: three years or less; intermediate term: three to 10 years; or long - term: usually 10 years or longer).
The three main risks that they carry are — credit risk where the
bond issuer fails to make timely interest payments and repay the principal amount on
maturity; liquidity risk where the fund manager is not able to sell his paper due to lack
of demand for a
particular security and; interest rate risk where a change in interest rate changes the price
of the
bond.