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Which one of the following risk-premiums, by definition, is not related to the term structure of interest rates (i.e. shape of the yield curve)? Default
Which one of the following risk-premiums, by definition, is not related to the term structure of interest rates (i.e. shape of the yield curve)? |
Default risk. |
Inflation. |
Neither inflation or interest-rate risk. |
Interest rate risk. |
Liquidity. (WRONG) |
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