what is an interpolated yield curve i curve 
an interpolated yield curve i curve is a yield curve derived by using on the run treasuries because on the run treasuries are limited to specific maturities the yield of maturities that lies between the on the run treasuries must be interpolated interpolation is a way to determine the value of an unknown entity often by using numerical analysis to estimate the value of that entity financial analysts and investors interpolate yield curves in order to help predict future economic activity and bond market price levels they can accomplish this by using a number of methodologies including bootstrapping and regression analysis understanding the interpolated yield curve i curve the yield curve is the curve that is formed on a graph when the yield and various maturities of treasury securities are plotted the graph is plotted with the y axis depicting interest rates and the x axis showing the increasing time durations since short term bonds typically have lower yields than longer term bonds the curve slopes upwards from the bottom left to the right 