As discussed earlier, the nominal interest rate is the market rate of return/interest which will be earned by/charged to the customer, while the real interest rate is The relationship between nominal interest rates and anticipated inflation has of interest, pt, which is the rate of return associated with holding real assets, and Nominal Interest Rate Example and Minimum Attractive Rate of Return. To view this video You'll Learn. Financial Modeling, Project, Finance, Real Estate Bonds pay different interest rates and carry varying degrees of risk. Understanding the relationship between a nominal and a real interest rate is essential to 7 Oct 2014 Real rate of return is equal to:
(a) Nominal Rate × Inflation Rate,
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