Question: Hello, can someone please assist me with this question? I am getting confused on the wording of all of these. Also, could you give a

Hello, can someone please assist me with this question? I am getting confused on the wording of all of these. Also, could you give a brief discription as to why this is the answer?

Hello, can someone please assist me with this question? I am getting

Characteristic Component Symbol This is the rate on short-term U.S. Treasury securities, assuming there is no inflation. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premiunm This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value 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. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. | | Nominal risk-free rate Default risk premium Real risk-free rate Maturity risk premium Liquidity risk premium Inflation premium

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!