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3. Determinants of market interest rates Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the components (determinants) and the

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3. Determinants of market interest rates Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the components (determinants) and the symbols associated with each characteristie: Component Symbol Characteristic This is the rate on short-term U.S. Treasury securities, assuming there is no inflation. It is calculated by adding the inflation premium to Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium This is the difference between the interest rate on a U.S. Treasury bond and a corporate bond of the same profile that is the same maturity and marketability, This is the premium added to the equilibrium interest rate on a security that cannot be bought or sold quickly enough to prevent or minimize loss This is the premium that reflects the risk associated with changes in interest rates for a long-term security Grade It Now Save & Cantin Continue without saving Q Search this Follows. Identify the components (determinants) and the symbols Component Symbol flation. Nominal risk-free rate interest Maturity risk premium corporate Inflation premium annot be Real risk-free rate Liquidity risk premium ates for a Default risk premium Grade It Now Save & Continue Continue without saving dentify the components (determinants) and the symbols Component Symbol MRP DRP TRE Grade It Now Save & Continue Continue without saving

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