flat yield curve investment & finance definition
At a particular time, similar yields on bonds of similar risk at all maturity lengths.
Flat Yield Curve
A flat yield curve results when the yields are basically the same for all maturities.
Flat Yield Curve
A yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve is often seen during transitions between normal and inverted curves.
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[note 2] This quantity is the duration of a perpetual bond (assuming a flat yield curve at the coupon), and is simply or the tenor, whichever is shorter.
The positivity of convexity can also be proven analytically for basic interest rate securities. For example, under the assumption of a flat yield curve one can write the value of a coupon-bearing bond as , ...
Though in the long run investors in First Marblehead will likely make money, the short run may end up being very rocky with potential cancellations on the horizon and a flat yield curve.
A flat Yield Curve results when there is little difference between short-term and long-term rates. When short-term rates are lower than long-term rates, it is called a positive Yield Curve.
If short-term rates are lower than long-term rates, it is a positive yield curve, if short-term rates are higher, it is a negative or inverted yield curve. If there is isn't much
difference, it is a flat yield curve.
A positive yield curve means short term interest rates are lower versus long term rates. A negative yield curve is just the opposite, whereas a flat yield curve shows little variance in the yields of short term bonds versus long term bonds.
flat yield curve A yield curve showing the same yield for short-maturity and long-maturity bonds. Also known as even yield curve. flexible benefit plan A benefits plan that allows employees to select from a pool of choices, some...
 See also: Yield curve, Curve, Investment, Flat, Yield
  
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