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With regard to the determinants of interest rates as described in the textbook: Investors want to be compensated for the degree of uncertainty surrounding a
With regard to the determinants of interest rates as described in the textbook: Investors want to be compensated for the degree of uncertainty surrounding a borrower's willingness/ability to make interest and principal payments in the future. This compensation is referred to as the inflation risk premium the repayment risk premium the liquidity risk premium the maturity risk premium. the default risk premium
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