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What is Fisher equation?
The Fisher equation is the relation between interest rate inflation and nominal rate. You must know that it is an important topic for both Economics and Mathematical Finance. This equation is mostly used in bonds calculation in YTM. Investment in IRR calculation is also done with the help of this.
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What are the different fields where this can easily be used?
The different fields are as follows-
- Cost benefit Analysis
- Inflation indexed bonds
- Monetary Policy
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What are the related terms of Fisher equation?
The different factors are–
- Theory of interest
- Real estate rate behavior
- Interest rate inflation
- Real interest rate
- Nominal interest rate
- Yield Curve
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