The Interest Rate Risk Premium Is The

question 124

Multiple Choice

The interest rate risk premium is the:

• A) additional compensation paid to investors to offset rising prices.
• B) compensation investors demand for accepting interest rate risk.
• C) difference between the yield to maturity and the current yield.
• D) difference between the market interest rate and the coupon rate.
• E) difference between the coupon rate and the current yield.

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