Interest Rate

in #risk • 3 years ago

Real Interest Rate = Interest rate - Inflation rate

Nominal Rf rate = Real Rf rate + Expected Inflation rate

EAR
= (1+periodic rate)^m - 1

Periodic rate = stated annual rate / #of compouding per yr

#free #interest #ear #inflation #nomial #real #cfa
3 years ago in #risk by
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     3 years ago 

    Upvoted! Thank you for supporting witness @jswit.

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