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To align the interests of the agents with the principal's own interests,one option is to create a behavior-oriented contract that includes
Inflationary Expectations
Anticipations of future inflation that can influence economic behaviors in the present.
Default Risk Premium
The additional amount a borrower must pay to compensate the lender for assuming the risk that the borrower may default on the loan.
Corporate Bond
A debt security issued by a corporation to investors, typically offering interest payments and principal repayment at maturity.
Yield Curve
A graph showing the relationship between bond yields and maturities, commonly used to gauge future interest rate changes.
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