The Additional Interest That Investors Require to Buy a Long-Term

question 105

Multiple Choice

The additional interest that investors require to buy a long-term bond instead of a sequence of short-term bonds is known as the

• A) risk premium.
• B) default premium.
• C) term premium.
• D) segmented premium.

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Definitions:

Responsibility

The responsibility or obligation to manage something or to oversee someone.

Enjoyable

Providing pleasure or delight; pleasing in nature.

Stereotypes

Oversimplified, generalized beliefs or ideas about a group of people, based on assumptions about traits, behaviors, and roles.

Older People

Individuals typically categorized as being in the later stage of life, often considered to be beyond middle age.