Abstract
The term structure of interest rates concerns the relationship among the yields of default-free securities that differ only with respect to their term to maturity. The relationship is more popularly known as the shape of the yield curve and has been the subject of intense examination by economists for over fifty years. Historically, three competing theories have attracted the widest attention. These are known as the expectations, liquidity preference and hedging-pressure or preferred habitat theories of the term structure.
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© 1989 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Malkiel, B.G. (1989). Term Structure of Interest Rates. In: Eatwell, J., Milgate, M., Newman, P. (eds) Finance. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20213-3_30
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DOI: https://doi.org/10.1007/978-1-349-20213-3_30
Publisher Name: Palgrave Macmillan, London
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