Attempts: Keep the Highest /1 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: Component Symbol Characteristic 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 as a compensation for the risk that an investor will not get paid in full 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 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 is the premium added to the risk-free rate that reflects the average sustained Increase in the general level of prices for goods and services expected over the security's entire life Grade It Now Save & Continue Continue without saving