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    Exam 7: Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques
  5. Question
    The __________________________ Component of Interest Rates Is the Risk Premium
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The __________________________ Component of Interest Rates Is the Risk Premium

Question 79

Question 79

Short Answer

The __________________________ component of interest rates is the risk premium due to the probability that the borrower will miss some payments or will not repay the loan.

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