Component Symbol Characteristic t changes over time, depending on the expected rate f return on productive assets exchanged among market partidipants and peopie's time preferences for consumption This is the rate on a Treasury bill or a Treasury bond. This is the premium added as a compensation for the risk that[ an investor will not get paid in full. 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. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to L lower values of this premium. 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 0 Type here to search Ei a 3 4 5 6