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Maturity Risk Premium
The additional interest rate or yield that investors demand to hold longer-maturity debt over shorter-term instruments.
Lenders
Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.
Interest Rate Model
A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.
Default Risk Premium
The additional amount a borrower must pay to compensate the lender for assuming the risk of default.
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