Here are the options:
a. real risk-free rate.
b. liquidity premium.
c. inflation rate.
d. maturity risk premium
Answer:
d. maturity risk premium
Step-by-step explanation:
Note that a maturity risk premium is a type of long-term investment where the investor in a sense sacrifices his today's consumption for consumption at a later date by his belief that his investment would yield good returns in the future.
In other words, the investor takes the risk of holding bonds until reaching maturity and then receives compensation for holding until the end.