Some articles on liquidity premium theory, theory, premium:
... The Liquidity Premium Theory is an offshoot of the Pure Expectations Theory ... The Liquidity Premium Theory asserts that long-term interest rates not only reflect investors’ assumptions about future interest rates but also include a premium for holding long-term bonds (investors prefer short ... This premium compensates investors for the added risk of having their money tied up for a longer period, including the greater price uncertainty ...
Famous quotes containing the words theory and/or premium:
“The theory of rights enables us to rise and overthrow obstacles, but not to found a strong and lasting accord between all the elements which compose the nation.”
—Giuseppe Mazzini (18051872)
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, womans premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, until death doth part.”
—Emma Goldman (18691940)