Whether effective and nominal rates can ever be the same depends on whether interest calculations involve simple or compound interest. While in a simple interest calculation effective and nominal ...

The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

When you want to generate income rather than equity growth, a debt security like bonds is your most likely choice. However, all bonds are not the same. Bonds pay different interest rates and carry ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. David is comprehensively experienced in many facets of financial and legal ...

We have argued that nominal rates and differentials are the key driver of the dollar. Some have suggested real rates are the real driver. We test the hypothesis and offer some initial results. Real ...

Yields on emerging Asian bonds after adjusting for inflation have surged versus nominal yields, raising the appeal of the region’s debt. An average of seven emerging Asian 10-year yields adjusted for ...

Several advanced economies implemented negative nominal interest rates in the middle of the last decade, seeking to provide further monetary accommodation once cuts in positive territory had been ...

WASHINGTON, DC - JANUARY 10: Federal Reserve Board Chairman Jerome Powell speaks at the Economic Club of Washington January 10, 2019 in Washington, DC. Powell answered a range of questions related to ...

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...

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Inflation not only erodes the purchasing power of the dollar, it also impacts borrowing costs and real economic returns on investment securities. For this reason, investors are wise to understand and ...