Which of the following is NOT a component of the yield curve?

The yield curve represents the relationship between interest rates (or yields) of bonds of different maturities, typically government bonds, and it serves as a benchmark for other interest rates in the economy.

Short-term interest rates and long-term interest rates are integral components of the yield curve because they directly indicate the yields associated with bonds that have differing maturities, helping to illustrate the cost of borrowing money over various time frames.

Inflation expectations also play a critical role in the formation of the yield curve. If investors anticipate higher inflation in the future, they will demand higher yields on longer-term bonds to compensate for the decreased purchasing power of future cash flows.

In contrast, corporate bond ratings are not a component of the yield curve. Ratings reflect the creditworthiness of a corporation and its ability to meet financial obligations, impacting the risk premium and yield of corporate bonds compared to government securities, but they do not figure directly into the shape or construction of the yield curve itself. The yield curve solely focuses on interest rates over various maturities, thus making corporate bond ratings an extraneous factor in this context.