Liquidity Risk Premium is a:
A) premium charged by lenders due to the risk from increases in inflation and interest rates that will cause the price to decline.
B) premium charged by lenders due to the fact that some securities cannot be easily converted in cash
C) premium charged by lenders due to the risk that the issuer is unable to pay the interest or face value
D) premium charged by lenders in anticipation of inflation
Correct Answer:
Verified
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