[单选题]

The liquidity premium can be best described as compensation to investors for the:

A.Risk of loss relative to an investment's fair value if the investment needs to be converted to cash quickly.

B.Increased sensitivity of the market value of debt to a change in market interest rates as maturity is extended.

C.Possibility that the borrower will fail to make a promised payment at the contracted time and in the contracted amount.

参考答案与解析: