Short Answer
Using each of the descriptions given below, identify the key term or concept that goes with them.
a. Maturity preferences of active investors divide up the financial markets into different sub-markets.
b. Investors must receive an extra component of yield or return in order to accept the risk of longer-term financial instruments.
c. Graphical representation of yield to maturity versus calendar time.
d. Dominant determinant of a yield curve's shape is investors' anticipation of future interest rate movements.
e. Adjusts payment of income to an investor based upon the actual rate of inflation.
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