An inflation rate includes in bond's interest rates is one which is inflation rate

A at bond issuance
B expected in future
C expected at time of maturity
D expected at deferred call

Correct Answer: expected in future

An inflation rate includes in bond's interest rates is one which is inflation rate expected in future. Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0 percent.

Related Questions

Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?
Interest rates, tax rates and market risk premium are factors which an/a

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