The formula for simple interest requires your initial principal balance, annual interest rate, and time in years ... which means they take on risk you won't see in a bond or CD.

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 ...

Bonds' interest rates combine risk-free rate, inflation, liquidity, maturity, and default risk premiums. High-risk companies offer higher interest rates to compensate for possible default risks.

Important factors include credit risk, time risk, inflation risk and interest rate risk. Credit risk refers to the chance you don’t get back all or any of your money. This might be a “junk ...