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 precise answer from the following question. One of the reasons that some new corporations secure much financing by selling the stock is that: (1) Financial investors form higher rates of return from the bond interest than
Can someone please help me in finding out the accurate answer from the following question. Firms which colluded by circulating the names of the union organizers and hence they would have difficulty getting jobs were engaged in a now-illegal practice termed as: (1) Fea
In this illustrated figure in below the firm probably to have economic profits in the long run would be as: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D. Q : Measures of Poverty Line The poverty The poverty line is: (1) about $15000/year for a family of two in 2006. (2) an index which varies depending on family characteristics. (3) dependent only on the size and income of a family. (4) about $12500/year for a family of four in 2006. (5) the p
The poverty line is: (1) about $15000/year for a family of two in 2006. (2) an index which varies depending on family characteristics. (3) dependent only on the size and income of a family. (4) about $12500/year for a family of four in 2006. (5) the p
Marginal physical product: It refers to the addition build to the total product.
Technological advances have raised agricultural productivity enormously among 1800 and nowadays, and therefore, the relative incomes of family farmers declined dramatically. There hardships endured through American farm families throughout this period
Contestable markets and purely competitive markets share the feature of: (w) collusive behavior of huge firms. (x) freedom of entry and exit into the long run. (y) widespread product differentiation. (z) persistent economic profits. Q : Economic profit generating purely In this illustrated figure in below the only purely competitive firm currently generating economic profit is in: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D. Q : Define Inferior good Inferior good : It Inferior good: It is a good for which, other things equivalent, a rise in income leads to a reduction in demand.
In this illustrated figure in below the only purely competitive firm currently generating economic profit is in: (w) Firm A. (x) Firm B. (y) Firm C. (z) Firm D. Q : Define Inferior good Inferior good : It Inferior good: It is a good for which, other things equivalent, a rise in income leads to a reduction in demand.
Inferior good: It is a good for which, other things equivalent, a rise in income leads to a reduction in demand.
Total fixed cost: 1. Fixed cost remains constant at each level of output ie it do not change with change in quantity.2. It can not be zero when output is zero.3. Its curve is parallel to X-aixs4.
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