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 Nominal risk-free rate Maturity risk premium Characteristic This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time. This is the rate for a riskless security that is exposed to changes in inflation. This is the rate on short-term US Treasury securities, assuming there is no inflation. 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. As interest rates rise, bond prices fall, and as interest rates fall, bond prices rise. Because interest rate changes are uncertain, this premium is added as a compensation for this uncertainty. It is based on the bond's rating; the higher the rating, the lower the premium added, thus lowering the interest rate. ||| Default risk premium Inflation premium Liquidity risk premium Real risk-free rate H- 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 IP * Characteristic This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time. This is the rate for a riskless security that is exposed to changes in inflation. This is the rate on short-term US Treasury securities, assuming there is no inflation. 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. As interest rates rise, bond prices fall, and as interest rates fall, bond prices rise. Because interest rate changes are uncertain, this premium is added as a compensation for this uncertainty. It is based on the bond's rating; the higher the rating, the lower the premium added, thus lowering the interest rate. TRF DRP LP MRP