Inverted Yield On Cost Curve
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Submitted by Dividends4Life on Tue, 2008-09-02 07:20.
(via www.dividends4life.com)
A yield curve is the relationship between yield and maturity. In a "normal" yield curve yields rise as maturity lengthens. When yields drop as the term lengthens, it is referred to as an inverted yield curve. A Yield On Cost (current dividend/basis) curve, like a yield curve, should increase as you move forward in time.
