Whether effective and nominalrates can ever be the same depends on whether interest calculations involve simple or compound interest. While in a simple interest calculation effective and ...
A real interestrate is the difference between a nominal interest rate and the rate of inflation. Nominalinterestrates are the rates set by financial institutions, such as banks and ...
Nominal yield is the starting point for calculating a bond’s return. Also known as the bond’s coupon rate, is a fixed interestrate that a bond issuer agrees to pay to a bondholder until the ...