Question: The maturity risk premium Question 4 options: a ) captures the probability that the issuer will not pay interests or principal at the stated time

The maturity risk premium
Question 4 options:
a)
captures the probability that the issuer will not pay interests or principal at the stated time and stated amount.
b)
refers to the risk of a decline in bond values due to rising interests rates
c)
captures the net effect of interest rate risk and reinvestment risk
d)
captures the risk of an income decline due to drop in interest rates
e)
captures the liquidity of the issue

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