Term
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Definition
___ is needed to compensate lenders for investing in long term. The longer the maturity, the higher the ___.
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Term
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Definition
| ___ are considered default free while all other securities have some measure of risk. |
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Term
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Definition
| The economic role of the ___ is for economic unit to store, fund, and adjust liquidity. |
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Term
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Definition
| a market where ST marutity, highly marketable, and low default risk financial securities are bought and sold |
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Term
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Definition
| Corporate bonds offer higher yield than t-bonds |
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Term
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Definition
| The higher the liquidity, the lower the yield, cet. par. |
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Term
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Definition
| Interest payments from municipal bonds exempted from federal tax and state tax of the issuing state. |
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Term
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Definition
| is the risk that contracted payments are not being made in a timely fashion. |
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Term
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Definition
| ___ is the additional yield investor required to invest in secures with default risk. ___ is the difference between the yield of securities with default risk and yield of default free securities of similar maturity. |
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Term
Market Segmentation Theory
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Definition
| the yield on a bond of any maturity is determined by the supply of and demand for bond of that maturity. |
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