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
- National Association of Insurance Commissioners (NAIC)
National Association of Insurance Commissioners (NAIC) group founded in 1871 that meets ... - Production orientation
Production orientation is the number one priority is to produce a good to keep up with ... - Financial guarantees
Financial guarantees is the instruments used to enhance the credit standing of a borrower ... - Effecting exchange rate
Effecting exchange rate refers to an index, measuring the change in value of a foreign ... - Capital Mobility
Capital Mobility is the degree to which private capital moves freely from country to country ...