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How are urban heat islands responsible for extra rain in the city?
Maturity Risk
The risk that arises from the length of time until the principal amount of a fixed-income investment becomes due and payable, affecting the investment's exposure to interest rate changes.
Base Interest Rate
The minimum interest rate set by a central bank for lending to other banks, used as a benchmark for interest rates on loans and mortgages.
Pure Rate
The interest rate that reflects only the time value of money.
Liquidity Risk Premium
The additional return demanded by investors for holding assets that are not easily convertible into cash without a significant loss in value.
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