Abstract
The uncertainty attached to the future movements of interest rates is an important part of the theory of financial decision making. Most agents are risk-averse, and risk is linked in particular to interest rates. Investment decisions and asset/liability management are often very sensitive to perturbations of the yield curve. To hedge interest rate risk, the markets use increasingly complicated financial products (forward contracts, futures contracts, options on contracts). These constitute the forward markets.
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© 2007 Springer-Verlag Berlin Heidelberg
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(2007). The Yield Curve. In: Financial Markets in Continuous Time. Springer Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-71150-6_5
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DOI: https://doi.org/10.1007/978-3-540-71150-6_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-71149-0
Online ISBN: 978-3-540-71150-6
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