Week4Valuingbonds要点.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ANNUAL U.S. INFLATION RATES 1900-2011 Annual rates of inflation in the United States from 1900–2008. Annual Inflation (%) Global Inflation Rates Averages from 1900-2011 Inflation Inflation - Rate at which prices as a whole are increasing. Nominal Interest Rate - Rate at which money invested grows. Real Interest Rate - Rate at which the purchasing power of an investment increases. Nominal and Real Interest Rates Actual formula rnom = annual nominal interest rate rreal = annual real interest rate i = expected annual inflation rate