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The term structure of interest rates refers to the relationship between bonds with different times to maturity and their nominal yields to maturity. One of
The term structure of interest rates refers to the relationship between bonds with different times to maturity and their nominal yields to maturity. One of the several factors that determines the nominal yield to maturity is called "inflation premium": the higher the expected inflation, the _____ the premium. It is the additional return that compensates investors who are interested in buying bonds issued by _____ .
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