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Inflation Premium
The additional interest rate that lenders demand to compensate for the loss of purchasing power of money due to inflation.
Yield Curve
The relationship between interest rates and the term of debt, generally expressed graphically. A normal yield curve is upsloping, reflecting rates that increase with increasing term. An inverted curve is downsloping.
Liquidity Premiums
Additional yield that investors require for holding securities with lower liquidity.
Maturity Risk Premium
The additional interest rate or yield that investors demand to hold longer-maturity debt over shorter-term instruments.
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