The premium attached to the interest rate that is above the rate on the loan that poses the smallest risk.
Related information about interest rate risk premium:
- What is interest rate risk premium? definition and meaning
Definition of interest rate risk premium: The premium attached to the interest rate that is above the rate on the loan that poses the smallest risk.
- How an Interest Rate Risk Premium Affects Your ... - Go Banking Rates
Sep 17, 2010 ... Do you wonder why a higher risk investment or loan is associated with higher interest rates, too? It all has to do with the interest rate risk ...
- Conditional Time-Varying Interest Rate Risk Premium - Project MUSE
The one-factor model predicts that the interest rate risk premium depends on its ... conditional interest rate risk premium that depends positively on its conditional ...
- Conditional Time-Varying Interest Rate Risk Premium: Evidence ...
Aug 16, 2005 ... Existing studies of the term structure of interest rates often use spot Treasury rates to represent default-free interest rates. However, part of the ...
- Are International Interest Rate Differentials Driven by the Risk - SSRN
Feb 4, 2011 ... Number of Pages in PDF File: 14. Keywords: interest rate, risk premium, Asian countries, VECM. JEL Classification: E4, F3. Accepted Paper ...
- Modelling risk premium of repo interest rate in the SSE
With weekly data of repo rates in the SSE, it is found that the expectations hypothesis fails to explain the repo rates, and risk premiums are significant and ...
- On a risk-adjusted FISIM - Bank for International Settlements
(actual interest rate – risk premium) – reference rate = intermediation service. This means that intermediation services are properly measured by the difference ...
- Interest rate sensitivity and risk premium of property stocks
This involves estimating the interest rate risk premium and determining its statistical ... and Warga, 1986) to determine the monthly interest rate risk premium of ...