Interest rate risk premium
What is Interest rate risk premium? Briefly explain it.
Expert
Interest rate risk premium: It is the third, and last, component of the term structure has to do with interest rate risk. Longer-term bonds contain much higher risk of loss resultant from modifications in interest rates than do shorter-term bonds. Investors identify this risk, and they demand extra compensation in the form of maximum rates for bearing it. This extra compensation is termed as the interest rate risk premium. The longer the term to maturity, the bigger is the interest rate risk; therefore the interest rate risk premium rises with maturity.
Can someone please help me in finding out the accurate answer from the following question. Jones, a computer programmer, plays computer games all day rather than doing his work. This is an illustration of: (i) Moral turpitude. (ii) Inefficiency salaries. (iii) Shirkin
When you compute cross-elasticity of demand, what are you trying to find out? What do a negative coefficient and a positive coefficient imply?
Maximizing the net social benefits from a specified stock of resources does NOT need that: (i) price equals marginal cost for all goods. (ii) marginal social benefit equals marginal social cost [MSB = MSC]. (iii) no one can be made better off unless s
Define aggregate demand: Aggregate demand is stated as the money value of total goods and services demanded by an economy throughout a particular period.
Indirect taxes: Whenever the liability to pay tax is on one person and the burden of that tax falls on another person, it is termed as indirect tax. Illustrations are: sales tax, excise duty, VAT, tax on services and so on.
I have a problem in economics on Substitution problem on consumption. Please help me in the following question. Teddy forever eats peanut butter and jelly sandwiches for lunch as he should live on $20 dollars a week. Jelly jumped in price and, to plea
The areas illustrates in this Lorenz diagram can be used to compute a Gini index as: (i) (cow + pig)/cow. (ii) cow2/(cow + pig). (iii) pig2/(cow + pig). (iv) cow/(cow + pig) (v) (cow + horse)/pig. Q : Marginal revenue at possible output At each possible output level, there a purely competitive firm’s marginal revenue curve is: (w) above its demand curve. (x) below its demand curve. (y) identical along with its demand curve. (z) steeper than its demand curve. Q : C why cotton textile tndustry is a why cotton textile tndustry is a microeconomic study
At each possible output level, there a purely competitive firm’s marginal revenue curve is: (w) above its demand curve. (x) below its demand curve. (y) identical along with its demand curve. (z) steeper than its demand curve. Q : C why cotton textile tndustry is a why cotton textile tndustry is a microeconomic study
why cotton textile tndustry is a microeconomic study
Give me answer of this question. Which one of the following is presently a major deterrent to bank panics in the United States? A) the legal reserve requirement B) the fractional reserve system C) the gold standard D) deposit insurance
18,76,764
1923182 Asked
3,689
Active Tutors
1421854
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!