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Trait and Factor Theory Focuses on

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Trait and factor theory focuses on


Definitions:

Term Structure

Pertains to the connection between interest rates or yields on bonds and varying durations or maturities.

Interest Rates

The percentage charged on the total amount of borrowed money or paid on deposited funds.

Bond Rating Agencies

Organizations that assess the creditworthiness of both corporate and governmental bonds, issuing ratings that affect interest rates and investment attractiveness.

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