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Further to a post here, you can appreciate by the interest rate and depreciate by the inflation rate at the same time like this: principal p = 1000 interest rate r = 0.03 inflation i = 0.02 number of years n = 10 p (1 + r)^n (1 + i)^-n = 1102.48 The calculation can be simplified with a factor x: x = i (1 + r)/(1 + i) = 0.0201961 p (1 + (r ...

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This calculator does not include inflation in whatever interest rate you specify (I checked). Usually, the rate quoted by banks is the nominal interest rate, which is simply how much your capital will appreciate with inflation (e.g. higher inflation would yield higher returns). It does not take into account purchasing power and is calculated as follows: ...

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An IRS contract will state in detail what interest is payable to whom and when. The typical vanilla Xibor IRS at present has a CSA for daily-rebalanced cash accruing at OIS rates. So the coupons are fixed on Xibor, and between coupon payments the PV is collateralised with cash, rebalanced every day using OIS interest accrual. However, some old CSAs permit ...

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