15. This is because forward, or expected future, rates lie above yields throughout the period covered in the exhibit. See Chapter 8 in Steven Dym, The Complete Practitioner’s Guide to the Bond Market. The analysis here is restricted to macro-economic factors in the yield-curve. Microeconomic factors, such as interest rate risk, volatility and bond convexity are omitted. For a fuller treatment, see Dym, ibid.

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