Question

In: Economics

The additional incentive that the purchaser of a Treasury security requires to buy a long−term security...

The additional incentive that the purchaser of a Treasury security requires to buy a

long−term

security rather than a

short−term

security is called the

A.

term premium.

B.

tax premium.

C.

market premium.

D.

risk premium.

Solutions

Expert Solution

Answer:- Option (A) " Term premium " is the correct answer.

The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the term premium.

Rahul Sunny answered 2 years ago
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