Copyright 2010 Pearson Addison-Wesley. All rights reserved. Chapter 6 The Risk and Term Structure of Interest RatesCopyright 2010 Pearson Addison-Wesley. All rights reserved. 6- 2 FIGURE 1 Long-Term Bond Yields, 19192008 Sources: Board of Governors of the Federal Reserve System, Banking and Monetary Statistics, 19411970; Federal Reserve: www.federalreserve.gov/releases/h15/data.htm.Copyright 2010 Pearson Addison-Wesley. All rights reserved. 6- 3 6.1Risk Structure of Interest Rates Bonds with the
