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Murrr4er [49]
3 years ago
15

The inflation premium: A. increases the real return. B. is inversely related to the time to maturity. C. remains constant over t

ime. D. rewards investors for accepting interest rate risk. E. compensates investors for expected price increases.
Business
1 answer:
krok68 [10]3 years ago
8 0

Answer:

The answer is E. compensates investors for expected price increases.

Explanation:

Inflation premium arise from  that, investors holding nominal assets

are exposed to unanticipated changes in inflation.

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