Examlex
A falling price level is called ________ and a fall in the rate of inflation is called ________.
Inflation Premium
The additional yield that investors demand on securities to compensate for the loss of purchasing power due to inflation.
Nominal Interest Rate
The stated interest rate of a bond or loan, which does not account for inflation or the compounding of interest.
Bond Yield
The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.
Face Value
Face value refers to the nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.
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