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How to Calculate Maturity Risk Premiums

By Motley Fool Staff – Updated Apr 30, 2025 at 3:10 PM

Key Points

  • Maturity risk premiums increase with bond term length, influencing interest rates.
  • Investors require higher premiums for longer-term bonds due to increased risk.
  • Calculate maturity risk premium by subtracting expected inflation and default risk from total yield.
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