nominal rate

Definition

The stated interest rate on a bond, unadjusted for inflation.

Use nominal rate in a sentence

I wanted to know the nominal rate of the bind and that could be hard to figure out for some people.

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To help me pay for college, my dad took out twenty government bonds with a nominal rate of five percent when I was young

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The nominal rate stated on the bond was four percent per year. While this was a good rate now, they took a risk if the rates eventually go up.

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Annual Percentage Rate Fisher effect