The yield differential (premium) between short-term and long-term investments/ instruments that arises only for time horizon considerations. It relates to matching the time horizons of investors and issuers, making the yield differential between short-term and long-term instruments a matching premium rather than necessarily a premium for risk taking.
If such a premium arises from risk taking, rather than simply for time differences, it will be known as a horizon risk premium (HRP).
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