Term Premium Refers to

question 10

Multiple Choice

Term premium refers to

• A)the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate.
• B)the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rate.
• C)the difference between the corporate bond rate and the risk-free rate of Treasury bonds.
• D)the difference between prime rate and the discount rate.

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Definitions:

External Dimensions

Refers to measurements that describe the outer limits or size of an object or component.

Internal Dimensions

Measurements within an object, space, or container, referring to its size or volume from the inside.

Force Fit

A connection between two components where interference exists, requiring force for assembly due to the tightness of the fit.

Basic Diameter

The nominal or theoretical diameter of a cylindrical feature before any tolerances or deviations are applied.