What amount of dollar income is presented with nominal yield?
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katuscha
Apprentice
Joined: 12 Feb 2006
Posts: 3
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 Posted: 07/26/08 - 05:21 Post subject: |
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| After I have comprehended what nominal dollars are and what is the difference between nominal and real dollars I have another dilemma. What amount of dollar income is presented with nominal yield? Is the yield the same as interest rate because that is how I understand it? And finally, is there the term ‘real yield’? According to the analogy, there is. |
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vernen
Apprentice
Joined: 18 Apr 2005
Posts: 6
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| Posted: 08/24/08 - 22:37 Post subject: |
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| The analogy is alright. There are both nominal and real yield and according to my humble knowledge the difference in their meanings correspond to that of nominal and real dollars. I suppose that those yields have something to do with risk factors. I can’t tell you what those actually mean because though it is not too complicated to understand the difference between nominal and real currencies, the situation with bonds and yields is a bit different and complicated. I think that yield is not as the interest rate but I suggest you to check this further and not take what I have said for granted. Just to add that I have heard that nominal yield can also be called coupon rate. Maybe this rings a bell. |
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