Attempts Keep the Highest / 1 1. Ch. 5 More basic concepts: alternative shapes of yield curves A yield curve is a graphical representation of the relationship between the yields and the maturities of securities issued by a given borrower in a given currency on a given date. The mathematical relationship between these two variables, the yield and the maturity, is called the term structure of interest rates, and the graphical relationship (plotted curve) is called the yield curve. A yield curve can exhibit a variety of shapes, and the general shapes have been given a specific name. Identify the name of the yield curve that matches the pattern described as follows. Name Given to Describe the Yield Curve Normal Yield Curve Flat Yield Curve Inverted Yield Curve Pattern Long-term rates are greater than short-term rates. O The yield curve exhibits a downward-sloping curve. The yield curve exhibits a zero slope. Grade It Now Save & Continue Continue without saving