Asked by Greyson Grubb on Jul 15, 2024
Verified
The term structure of interest rates includes only the real rate of return and the inflation premium.
Term Structure
The term structure, often related to interest rates, outlines the relationship between interest rates or yields and different maturity dates for debt securities.
Inflation Premium
The portion of a nominal interest rate that represents compensation for expected future inflation.
- Comprehend the term structure of interest rates and its components.
Verified Answer
TN
Thu Ngân Bi?n Th?Jul 15, 2024
Final Answer :
False
Explanation :
The term structure of interest rates includes the real rate of return, the inflation premium, and also often incorporates a risk premium and a liquidity premium, among other factors.
Learning Objectives
- Comprehend the term structure of interest rates and its components.
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