Characteristic Component Symbol This is the rate on a Treasury bill or a Treasury bond....
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Characteristic Component Symbol This is the rate on a Treasury bill or a Treasury bond. It changes over time, depending on the expected rate of return on productive assets exchanged among market participants and people's time preferences for consumption. 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 lower values of this premium. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. This is the difference between the interest rate on a US Treasury bond and a corporate bond of the same profile-that is, the same maturity and marketability
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