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Demonstrate that bond yields and interest rates reflect the effect of six different things. Define the real interest rate and five premiums that investors demand

Demonstrate that bond yields and interest rates reflect the effect of six different things. Define the real interest rate and five premiums that investors demand as compensation for risk. Define each of these concepts: expected future inflation, interest rate risk, default risk, taxability and lack of liquidity Explain how each of these concepts influences investors: expected future inflation, interest rate risk, default risk, taxability and lack of liquidity

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