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.