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How rates depends on maturity

Rates depending on maturity. Even though rates with different maturity (all recalculated to a yearly rate) need not be exactly equal, they cannot be too different either. This is particularly true for rates with similar maturity. The seven month rate cannot deviate far from the six month rate since they are fairly close substitutes.

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9582414

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