Question: please help Question 9 (4 points) The default risk premium: compensates investors for interest rate risk, which is that long-term securities are more price sensitive
Question 9 (4 points) The default risk premium: compensates investors for interest rate risk, which is that long-term securities are more price sensitive to interest changes than short-term securities. is equal to expected inflation over the life of the security is added to the equilibrium interest rate on a security if the security cannot be converted to cash quickly at close to "fair market value." is the difference between the interest rate on a U.S. Treasury bond and a corporate bond of equal maturity and marketability
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