The interest rate is also defined as the relationship between bond or interest rates and maturity time. The interest rate is also called as yield rate and therefore is playing a vital role in part of the economy. The structure yield also refers as market expectations moreover, it used for further needs, therefore this yield rate is provided in the policy of monetary conditions. The yield curve differs based on interest rates, if your interest is long term then it will raise. In case if your value is low, then it becomes less. Here the plot of the UK yield curve is given below where it highly used for people how the value is often increasing.
The plot of the interest curve provides number of bonds where along with the various terms in order to identify the terms of risk, tax considerations as well as liquidity. Also the yield curve is mainly used to locate the economic activity; however, it provides the future predictor. The interest rate contains many of the factors where the rates of future only affect the curve of yield. Normally the literature affects the variety of macroeconomic especially this policy of monetary is used to place the slope in the yield curve.