Asked by Sarah Peebles on Apr 27, 2024
Verified
Provide an appropriate definition of interest rate risk premium.
Interest Rate Risk Premium
The extra return investors demand for holding an interest-bearing asset, compensating them for the risk of interest rate fluctuations.
- Define and explain interest rate risk premium, liquidity premium, and protective covenants.
Verified Answer
ST
Sanju ThakurMay 03, 2024
Final Answer :
The compensation investors demand for bearing interest rate risk.
Learning Objectives
- Define and explain interest rate risk premium, liquidity premium, and protective covenants.
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