Nominal Interest Rate
Nominal Interest Rate = Real Interest Rate + Inflation Premium + Risk Premium
In practice, the inflation premium is often assumed to be the expected inflation rate and the risk premium is ignored. Unless the economy is experiencing a deflationary period, the nominal rate will be higher than the real rate.
Investment dictionary. Academic. 2012.
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Nominal interest rate — In finance and economics nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates as stated without adjustment for the full… … Wikipedia
Nominal interest rate — The interest rate unadjusted for inflation. The New York Times Financial Glossary * * * nominal interest rate nominal interest rate ➔ rate1 * * * nominal interest rate UK US noun [C] ► ECONOMICS, FINANCE an interest rate that does not show the… … Financial and business terms
nominal interest rate — The interest rate unadjusted for inflation. Bloomberg Financial Dictionary * * * nominal interest rate nominal interest rate ➔ rate1 * * * nominal interest rate UK US noun [C] ► ECONOMICS, FINANCE an interest rate that does not show the effect of … Financial and business terms
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nominal interest rate — Fin the interest rate as specified, without adjustment for compounding or inflation … The ultimate business dictionary
Interest rate — Finance Financial markets Bond market … Wikipedia
interest rate — The percentage of an amount of money which is paid for its use for a specified time. Commonly expressed as an annual percentage rate (APR). Federal and state laws regulate interest rate amounts and disclosures on consumer loans. See annual… … Black's law dictionary
interest-rate futures — A form of financial futures that enables investors, portfolio managers, borrowers, etc. , to obtain protection against future movements in interest rates. Interest rate futures also enable dealers to speculate on these movements. In the UK,… … Big dictionary of business and management