An Additional Expected Return to Compensate for Interest Rate Risk

question 149

Multiple Choice

An additional expected return to compensate for interest rate risk on debt instruments with longer maturities.

• A) Maturity risk premium
• B) Default risk premium
• C) Interest rate risk
• D) Inflation premium

---

Definitions:

Public Schools

Educational institutions funded and administered by governmental entities, providing free education to students in a particular geographic area.

Republicans

A political party in the United States known for its conservative positions on economic and social policies.

Black Suffrage

The right of Black people, especially in the United States, to vote, a legal milestone achieved throughout various stages of legislative action, most notably the Voting Rights Act of 1965.