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When Florence, an 8 year old second grade student, sees only male carpenters building the new house next door, she concludes that she could not become a carpenter because she is not male. According to Gottfredson, Florence is developing
Maturity Risk Premium
The additional return that investors demand for bearing the risk associated with holding a longer-term debt instrument.
Yield Curve
A graphical representation showing the relationship between the interest rates of bonds of identical quality but different maturity dates.
Inflation
The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Par Value
The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.
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