Question: 8. Select two proper explanations about interest rate risk premium. A. it is the additional compensation paid to investors to offset rising prices. B. it

 8. Select two proper explanations about interest rate risk premium. A.

8. Select two proper explanations about interest rate risk premium. A. it is the additional compensation paid to investors to offset rising prices. B. it is a compensation investors demand for accepting interest rate risk. C. it is a difference between the yield to maturity and the current yield. D. it is a difference between the market interest rate and the coupon rate. E. it tends to increase with time-to-maturity

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