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 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 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 rate for a short-term riskless security when inflation is expected to be zero. This is the premium added as a compensation for the risk that on investor will not get paid in full. Characteristic This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time. 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 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 rate for a short-term riskless security when inflation is expected to be zero. This is the premium added as a compensation for the risk that an investor will not get paid in full