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What is the maturity premium?
in Economics and Finance by Gold Status (10,269 points) | 8 views

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The maturity premium compensates investors for the increased sensitivity of the market value of debt to a change in market interest
rates as maturity is extended, in general (holding all else equal).

The difference between the interest rate on longer-maturity, liquid Treasury debt and that on short-term Treasury debt reflects a positive maturity premium for the longer-term debt (and possibly different inflation premiums as well).
by Gold Status (10,269 points)

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