12.1 Overview of Term structure of interest rates The relationship between yield to maturity and maturity Information on expected future short term rates can be implied from yield curve. The yield curve is a graph that displays the relationship between yield and maturity. Three major theories are proposed to explain the observed yield curve.12.1 Overview of Term Structure of Interest Rates ▪ The relationship between yield to maturity and maturity. ▪ Information on expected future short term rates can be implied from yield curve. ▪ The yield curve is a graph that displays the relationship between yield and maturity. ▪ Three major theories are proposed to explain the observed yield curve