Question: With nominal interest rates, the _ _ _ _ _ helps protect lenders from the risk that borrowers will default and the _ _ _

With nominal interest rates, the_____ helps protect lenders from the risk that borrowers will default and the_____ compensates investors for the additional risk associated with lending longer term rather than shorter term.
Question content area bottom
Part 1
A.
default premium; maturity premium
B.
maturity premium; inflation premium
C.
default premium; real rate
D.
inflation premium; maturity premium

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