menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Money Banking
  4. Exam
    Exam 5: The Risk Structure and Term Structure of Interest Rates
  5. Question
    The Additional Interest That Investors Require to Buy a Long-Term
Solved

The Additional Interest That Investors Require to Buy a Long-Term

Question 105

Question 105

Multiple Choice

The additional interest that investors require to buy a long-term bond instead of a sequence of short-term bonds is known as the


A) risk premium.
B) default premium.
C) term premium.
D) segmented premium.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q23: Currently, a three-year Treasury note pays 4.75%.

Q77: The segmented markets theory<br>A)explains upward-sloping yield curves

Q100: For an institutional investor,if the expectations theory

Q101: A company that retains a high bond

Q102: Which interest rate is typically the lowest?<br>A)

Q104: Which of the following is TRUE of

Q107: A one-year bond currently pays 5% interest.It's

Q108: For state residents,interest on most bonds issued

Q109: The risk structure of interest rates refers

Q110: According to the liquidity premium theory,<br>A) investors

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines