Distinguish between the real risk-free rate of interest, r*, and the nominal, or quoted, risk-free rate of interest, r RF.
financial markets Write out an equation for the nominal interest rate on any security. Distinguish between the real risk-free rate of interest, r*, and the nominal, or quoted, risk-free rate of interest, r RF. How do investors deal with inflation when they determine interest rates in the financial markets? Does the interest rate on a […]