Describe the difference between real and nominal rates


Questions:

1) Distinguish between the annual percentage rate and effective annual rate, and how each is used in financial decision making

2) Describe the various types of annuities and how they are calculated.

3) What's the relationship between interest rates and bond values.

4) How does time to maturity and the coupon rate affect interest rate risk.

5) Compare and contrast the characteristics of zero coupon bonds, government bonds and corporate bonds.

6) Describe the difference between real and nominal rates.

7) Describe how capital gains and dividend growth affect stock prices.

8) How are the price-to-earnings ratio and enterprise value ratios are used to compare stock values?

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Accounting Basics: Describe the difference between real and nominal rates
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