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It is just a line that plots desire rates or yields of bonds which have equivalent credit worth but unique maturity dates. Hence, the produce curve's slope presents a fair idea of the company's long term economic activities and interest fee improvements.
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1 organization has issued two bond classes. A person problem is often a mortgage bond and the opposite is actually a debenture. Which concern may have a better bond ranking and which situation will present a greater produce? Why?
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