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Why is the Maturity Risk Premium for 2 0 years greater than the Maturity Risk Premium for 5 years? Multiple Choice None of the choices

Why is the Maturity Risk Premium for

20

years greater than the Maturity Risk Premium for

5

years?

Multiple Choice

None of the choices is correct

At longer maturities, there is greater Default Risk

At shorter maturities, there is greater Inflation Risk

At shorter maturities, there is greater Default Risk

At longer maturities, there is greater Interest Rate Risk

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