Understanding Interest Rates: Term Structure and Yield Curve

This lecture introduces the concept of interest rates, focusing on the term structure and yield curve. It explains how interest rates vary with the investment term and how they are plotted on a graph called the yield curve. The lecture also covers the relationship between investment horizon and interest rates, using examples of risk-free U.S. Treasury securities. Additionally, it discusses how interest rates tend to fall during economic slowdowns, leading to an inverted yield curve, which is often seen as a negative forecast for economic growth.