Business / Taxes / Real Interest Rate: Your real interest rate is the interest rate you earn on an investment minus the rate of inflation. For example, if you're earning 6.25% on a bond, and the inflation rate is 2%, your real rate is 4.25%. That's enough higher than inflation to maintain your buying power and have some in reserve, which you could use to build your investment base. But if the inflation rate were 5%, your real rate would be only 1.25%.
Interest Noun Synonyms: attention, attentiveness, concern, regard, curiosity, scrutiny, notice, engagement
Interest Adjective Synonyms: concern, significance, importance, weight, moment, note, consequence
Rate Noun Synonyms: rank, grade, class, classify, evaluate, estimate, calculate, compute, count, reckon, judge, gauge, assess, appraise, measure
Rate Verb Synonyms: measure, pace, gait, speed, velocity, clip
Real Adjective Synonyms: genuine, true, actual, authentic, verified, verifiable, legitimate, right, bona fide, official, legal, legitimate, licit, natural, valid, veritable
Business / Finance / Randomized Strategy: A strategy of introducing into the decision-making process a chance element that is designed to confound the information content of the decision-maker's observed choices. MORE
Business / Finance / Rate Anticipation Swaps: An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, given the investor's assumptions about future changes in interest rates. MORE