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I-rate Terminology

By Samantha Hawkins,2014-12-22 11:22
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Richard Constand Page 1 8/13/2011 1 I-rate Terminology Nominal Rates - observed market rates Real rates - inflation adjusted market rates of interest Nominal Rate = Real Rate + (Inflation Premium) ========================================== Types of Risk: Default risk - non-payment Inflation risk - loss of purchasing power due to rise in price ..
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