Question: This is the rate on short - term U . S . Treasury securities , assuming there is no inflation. This is the rate on

This is the rate on short-term U.S. Treasury securities, assuming there is no inflation.This is the rate on a Treasury bill or a Treasury bond.This is the premium added to the risk-free rate that reflects the average sustained increase in the general level of prices for goods and services expected over the securitys entire life.It is based on the bonds 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.

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