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Terms
Fixed Income Terms
Interest Rate
Real Rate
Real Rate
Nick Name
Real Interest Rate
Parent term
Interest Rate
The Real Rate is the Nominal Rate Minus the rate of inflation
More about Real Rate
Mentioned by the Following
Entities
Fulcrum Financial Group, LLC
Publications
Secrets of Canadian Top Performers
Terms
Inflation
Notes
Example:
Assume nominal
interest rate
of 3%
Assume that
inflation
is 1%
Real
Interest Rate
= 3% - 1% = 2%