TheImpactofInflationDeflationYieldCurvesandDurationonInterestRatesandAssetPrices幻灯片.pptVIP

? Learning Objectives ? To discover how yield curves can be a useful tool for those interested in investing their money and in tracking the health of the economy. To look at the concept of duration and see how it can assist in the making of investment choices and in protecting against the risk of changing interest rates. Inflation and Interest Rates Inflation refers to the rise in the average level of prices for all goods and services. 7 Inflation and Interest Rates In recent years, the U.S. inflation and interest rates appear to be fairly strongly correlated. 1960 1.7 % 1.4 % 3.2 % 1970 5.7