Unlocking the Secrets of Bond Markets: How Yield Curves Impact Investments
The article discusses how investors use bond yields and the yield curve to decide if a bond is worth buying. The yield curve shows the relationship between a bond's yield and its maturity. There are different types of yield curves, like the par yield curve and the zero-coupon yield curve, which help in pricing bonds and determining their value in the market. The zero-coupon yield curve is especially useful for calculating implied forward rates and comparing bond prices.