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Finance Dictionary and Glossary of Investment Terms
Positive yield curve
Definition 1.
When long-term debt interest rates are higher than short-term debt rates (because of the increased risk involved with long-term debt security).
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Definition 2.
A situation in which long-term debt instruments have higher yields than short-term debt instruments. This is the usual condition, and happens because investors demand a higher return for taking on the additional risk of the longer-term investment. also called normal yield curve.
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