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This is a mathematical system used to body out curiosity rate movements. In addition, it also calculates selling prices for bonds. It is just a one particular-component design that describes any curiosity movements as pushed by a Main source of industry chance.

It is just a line that plots curiosity rates or yields of bonds that have very similar credit rating benefit but distinctive maturity dates. Thus, the generate curve's slope presents a fair concept of the organization's long term economic activities and desire fee variations.

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