538. An inflation rate includes in bond’s interest rates is one which is inflation rate

at bond issuance
expected in future
expected at time of maturity
expected at deferred call
✅ The correct answer is B.
An inflation rate includes in bond’s interest rates is one which is inflation rate expected in future. Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0 percent.

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