Investing Flashcards
1
Q
Term Spread
A
the difference between long-term and short-term yields
2
Q
Yield Curve AKA Term Structure of Interest Rates
A
Graph between time to maturity and yield to maturity
3
Q
What happens to the yield curve if the term spread is negative?
A
The yield curve is inverted
4
Q
Sharpe Ratio
A
risk premium / volatility
