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:

Characteristic

This is the premium added to the real risk$-$free rate to compensate for a decrease in

purchasing power over time.

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.

It is calculated by adding the inflation premium to $r^{**}.$

It is based on the bond's marketability and trading frequency; the less frequently the

security is traded, the higher the premium added, thus increasing the interest rate.

This is the premium that reflects the risk associated with changes in interest rates for a

long$-$term security.

Component

Nominal risk$-$free rate grad

Real risk$-$free rate

Default risk premium

Inflation premium

Liquidity risk premium

Symbol

$r_{RF}{?}_{?}$