DEFINED
By Staff Reporters
SPONSOR: http://www.MarcinkoAssociates.com
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Nominal yield, for most bonds and other fixed-income securities, is simply the yield you see listed online or in newspapers. Most nominal fixed-income yields include some extra yield, an “inflation premium,” that is typically priced/added into the yields to help offset the effects of inflation.
Real yields, such as those for TIPS, don’t have the inflation premium. As a result, nominal yields are typically higher than TIPS yields and other real yields.
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Filed under: "Ask-an-Advisor", Accounting, Financial Planning, Funding Basics, Glossary Terms, iMBA, Inc., Portfolio Management, Touring with Marcinko | Tagged: inflation, inflation premium, Marcinko, nominal yield, real yields, TIPs | Leave a comment »














