# How do You Calculate Maturity Risk Premium?

In order to calculate the maturity risk premium you must be able to estimate the expected rate on stocks, the return on safe and the difference to risk premium. You can find out more information here: www.investopedia.com
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 The purpose of maturity risk premium (MRP) is to raise the interest rates specifically on long-term bonds as compared to the short-term bonds. Over the years, the maturity risk premium http://www.ehow.com/facts_5943835_maturity-risk-pr...
 1. Create a list of the investments that you are interested in. Divide them into two categories; common stocks and treasury securities. Common stocks are issued by publicly traded http://www.ehow.com/how_2106435_calculate-risk-pre...
 1. Review the market risk premium formula. Market risk premium = expected market return - risk-free rate. 2. Determine the "risk-free" rate of return. Treasuries are considered http://www.ehow.com/how_5105613_calculate-market-r...
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A maturity risk premium is essentially the extra amount you can expect to earn on an investment by tying up your money in it for a longer period of time. For instance ...
The market risk premium is calculated by the formula: Market risk premium = Expected market return - Risk free rate. It is defined as the expected return of the ...
You can use a special financial formula in order to calculate a default risk premium. This formula includes things such as LP, DRP, and MRP. You can go to financial ...