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Up0
The interest rate that an investor earns can be broken down into several components that compensate the investor for various costs of deferring money. Which of the following is least likely to be included as a component?
- Liquidity premium
- Default risk premium
- Exchange rate premium
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Up5
The interest rate is the sum of the following factors:
- Real interest rate
- Inflation premium
- Default risk premium
- Liquidity premium
- Maturity premium
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Up1
Woo! I got it right.
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