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Definitions:
Maturity Risk Premium
An additional return that investors demand for holding a bond that has a longer time until maturity, reflecting the increased risk over time.
Interest Rates
The cost incurred by a borrower, represented as a proportion of the principal, for accessing a lender's assets.
Yield Curve
A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.
Liquidity Premiums
Additional yield that investors demand for holding securities that are not easily sold at their fair market value without a significant price concession.
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