Component Symbol Characteristic 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. It is based on the bond's rating; the higher the rating, the lower the premium added, thus lowering the interest rate. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value. It is calculated by adding the inflation premium tort. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time. >