Determinants of interest rates for the CFA Level 1 exam

Determinants of interest rates (for the CFA Level 1 exam) explores the components of interest rates:
the real risk-free interest rate
inflation premium
default-risk premium
liquidity premium
maturity premium
and goes through an exam-style question on approximating the rate of interest.

This video explores concepts covered in Lesson 2, Learning Module 1 of the Quantitative Methods section of the 2026 CFA Level 1 Curriculum

LOS:
interpret interest rates as required rates of return, discount rates, or opportunity costs and explain an interest rate as the sum of a real risk-free rate and premiums that compensate investors for bearing distinct types of risk

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