How to calculate the expected real interest rate
This paper uses the Fisher equation relating the nominal interest rate to the real interest rate and expected inflation to provide a deeper explanation of the financial 4 Nov 2016 The method of real interest rate calculation summarised above is since the TIPS yield is effectively the nominal yield minus the expected CPI. 24 Jul 2013 A nominal interest rate is the interest rate rate quoted on lending and borrowing Use the following formula to calculate real interest rates:.