1. First things first: be familiar with terminology we are using in this chapter: risk and liquidity structure of interest rates, term structure of interest rates, yield curve, default-free bonds, junk bonds, risk premium, risk spread, liquidity premium. You should be able to explain the meaning of each term cogently and quickly can you do itunder the pressure of quiz-taking conditions?). 1. First things first: be familiar with terminology we are using in this chapter: risk and liquidity structure of interest rates, term structure of interest rates, yield curve, default-free bonds, junk bonds, risk premium, risk spread, liquidity premium. You should be able to explain the meaning of each term cogently and quickly can you do itunder the pressure of quiz-taking conditions?)