What rates are included in the nominal rate of interest?
Answer
real risk-free
inflation.
Tags
#tvm
Question
What rates are included in the nominal rate of interest?
Answer
?
Tags
#tvm
Question
What rates are included in the nominal rate of interest?
Answer
real risk-free
inflation.
If you want to change selection, open document below and click on "Move attachment"
Open it The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.
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