INFLATION
Fisher Equation
Relates nominal rates, real rates and inflation exactly in multiplicative form.
Formula
(1+i)=(1+r)(1+π)
Variables: i nominal rate; r real rate; π inflation
What it means
Relates nominal rates, real rates and inflation exactly in multiplicative form.
Example
If real rate is 2% and inflation 3%, exact nominal rate is about 5.06%.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
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