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Jargon Buster



Results for letter: Y


YIELD

The annual dividend or income from an investment.

YIELD CURVE

The yield curve is a chart plotting the yield of an asset against the maturity of the asset. Typically the yield curve is an upward line with decreasing gradient as maturity increases. This makes sense as assets with a longer maturity incorporate more uncertainty and therefore more interest is paid to compensate the additional time risk.

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