Inflation premium
Describe the term Inflation premium and how it is the prospect of future inflation?
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Inflation premium: It is the prospect of future inflation, very strongly affects the shape of the term structure. Investors thinking regarding loaning money for different lengths of time recognize that future inflation erodes the value of dollars which will be returned. As an outcome, investors demand compensation for such loss in the form of maximum nominal rates. This extra compensation is termed as inflation premium.
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Explain the term Realized Yield? Also write some points on it.
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Profit is maximized when this purely-competitive brickyard constructs at: (i) point a. (ii) point b. (iii) point c. (iv) point d. (v) point e. Discover Q & A Leading Solution Library Avail More Than 1434279 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1950762 Asked 3,689 Active Tutors 1434279 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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