Some characteristics of the determinants of nominal interest rates are listed as

Question

Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the component:s (determinants) and the symbols associated with each characteristic: Characteristic Component Symbol It changes over time, depending on the expected rate of return on productive assets exchanged among market participants and people's time preferences for consumption This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time. This is the difference between the interest rate on a US Treasury bond and a corporate bond of the same profile-that is, the same maturity and marketability. This is the rate on a Treasury bill or a Treasury bond This is the premium that reflects the risk associated with changes in interest rates for a long-term security. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value. Real risk-free rate Inflation premium IP Nominal risk-free rate rRF Maturity risk premium MRP

Explanation / Answer

I see you've solved the first 2 already, so I'll assume you're well versed with bonds basics. Now, let's look at the remaining ones, one at a time

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