Question: With nominal interest rates, the _ _ _ _ _ helps protect lenders from having their purchasing power reward wiped out by higher prices and

With nominal interest rates, the_____ helps protect lenders from having their purchasing power reward wiped out by higher prices and the_____ compensates investors for the additional risk that the loan will not be repaid as agreed to by borrowers.
Question content area bottom
Part 1
A.
real rate; maturity premium
B.
default premium; real rate
C.
inflation premium; default premium
D.
maturity premium; inflation premium

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