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7. 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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image text in transcribedimage text in transcribed 7. 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 characteristic: Symbol \begin{tabular}{|c|} \hline DRP \\ \hlinerRF \\ \hline IP \\ \hline LP \\ \hliner \\ \hline MRP \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multirow[t]{2}{*}{ Component } & & Symbol \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ Nominal risk-free rate } \\ \hline Inflation premium & \multirow[t]{2}{*}{} & \\ \hline Real risk-free rate & & \\ \hline \multicolumn{3}{|l|}{ Liquidity risk premium } \\ \hline Maturity risk premium & & \\ \hline Default risk premium & & \\ \hline & & \\ \hline \end{tabular}

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