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Yield: A measure of the annual return on an investment.

Yield Curve: A chart in which the yield level is plotted on the vertical axis and the term to maturity of debt instruments of similar creditwor thiness is plotted on the horizontal axis. The yield curve is positive when long-term rates are higher than short-term rates. However, when short-term rates are higher than yields on long-term investments, the yield curve is negative or inverted.

Yield to Maturity: The rate of return an investor receives if a fixed-income security is held to maturity.