Characteristic Component Symbol 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 rate for a riskless security that is exposed to changes in inflation. This is the premium that reflects the risk associated with changes in interest rates for a long-term security. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value. This is the rate for a short-term riskless security when inflation is expected to be zero. It is based on the bond’s rating; the higher the rating, the lower the premium added, thus lowering the interest rate.