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Identify the components (determinants) and the symbols associated with each characteristic. Characteristic This is the rate for a short-term riskless security when inflation is expected
Identify the components (determinants) and the symbols associated with each characteristic. Characteristic This is the rate for a short-term riskless security when inflation is expected to be zero. This is the rate on a U.S. Treasury bill or a U.S. Treasury bond. This is the premium added to a real rate of interest to determine a nominal interest rate. This is the premium added as a compensation for the risk that an investor will not get paid in full. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. Component
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