Liquidity premium theory
Liquidity premium theory is the theory that the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a positive term (liquidity) premium.
Category: Banking & Finance, Economics
More from this Section
- Net Change
The Net Change is the discrepancy between the current trading session's closing price ... - Synthetic forward
Synthetic forward refers to complex option position which combines the purchase of a put ... - Standby Letter of Credit
Standby Letter of Credit is a form of guarantee such as a demand guarantee. Used as security ... - Real Estate Agent
A Real Estate Agent basically bridges the gap between buyers and sellers who want to buy ... - Transaction costs
Transaction costs are the time and money spent trying to exchange financial assets, goods, ...