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Graph the function.
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Nominal Risk-Free Rate
The nominal risk-free rate is the rate of return on an investment with no risk of financial loss, not adjusted for inflation.
Forward Rate
The agreed-upon interest rate for a financial transaction that will be conducted at a future date.
Net Present Value
A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.
Uncovered Interest Rate Parity
A financial theory stating that the difference in interest rates between two countries will be equal to the expected change in exchange rates between their currencies.
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