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The inflation premium component in interest rates Provides a measure to compensate for the possibility of a borrower defaulting on the loan. Provides a measure

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The inflation premium component in interest rates Provides a measure to compensate for the possibility of a borrower defaulting on the loan. Provides a measure to compensate for low trading volume. Provides a measure to compensate for a loss of purchasing power, i.e., maintain purchasing power. None of the above

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