Meaning LIQUIDITY THEORY OF THE TERM STRUCTURE: A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium
More terms such as Liquidity theory of the term structure in Dictionary L.
- Definition Life Insurance In Force:
- Examples The dollar amount of life insurance that a company has issued, measured as the sum of policy face values and dividends paid liquidity theory of the term structure definition.
- Definition Life Expectancy:
- Examples The length of time that an average person is expected to live, which is used by insurance companies use to make projections of benefit payouts liquidity theory of the term structure explain.
- Definition Liquid Asset:
- Examples Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities liquidity theory of the term structure what is.
- Definition Lambda:
- Examples The ratio of a change in the option price to a small change in the option volatility. It is the partial derivative of the option price with respect to the option volatility liquidity theory of the term structure meaning.
- Definition Low Balance Method:
- Examples A method of calculating interest on the basis of the lowest balance of an account over the applicable period liquidity theory of the term structure abbreviation.
