Maturity Risk Premium?

Answer

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 additional revenue you could get from a 10-year bond versus a 1-year bond would have a certain level of maturity risk premium.
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1 Additional Answer
Ask.com Answer for: maturity risk premium
What Is a Maturity Risk Premium?
When you invest in securities that pay you a fixed rate of interest, such as a fixed-rate bond or certificate of deposit, both you and the borrower are stuck with the agreed-upon interest rate for the term of the security. If the market interest rates go... More »
Difficulty: Easy
Source: www.ehow.com
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