which of the following is not an example of invisible radiation among the following
x Ray's
Answers
Ans:-The Fisher equation provides the link between nominal and real interest rates. To convert from nominal interest rates to real interest rates, we use the following formula: real interest rate ≈ nominal interest rate − inflation rate.
Answer:
1+i) = (1+r) * (1+π
The relationship between nominal and real interest rates is given by the Fisher equation. We use the following formula to change nominal interest rates into real interest rates: real interest rate nominal interest rate inflation rate.
Explanation:
Fisher equation:
The Fisher equation describes the link between nominal interest rates and real interest rates when inflation is taken into account in financial mathematics and economics. Its formula is real interest rate + nominal interest rate + inflation rate, named after American economist Irving Fisher. formal language, where Bonds with inflation indexes
Bond analysis may be done using the Fisher equation. The nominal interest rate less the anticipated inflation rate essentially represents the actual yield on a bond. The bondholder's real return will be negatively impacted if actual inflation throughout the bond's life exceeds projected inflation. To reduce this risk and inflation uncertainty, inflation-indexed bonds like U.S. Treasury Inflation-Protected Securities were developed. The real cash flow of an indexed bond (principal + interest) will not be impacted by inflation, assuring bondholders. The Fisher hypothesis, which contends that the real interest rate is untouched by monetary policy and hence unaffected by the predicted inflation rate, relies heavily on the Fisher equation. With a constant real interest rate, the equation states that every given percentage change in projected inflation must be accompanied by an equivalent percentage change in nominal interest rate in the same direction.
learn more
https://brainly.in/question/8514950
https://brainly.in/question/1487115
#SPJ3