Learn about the concept of real interest rate, its calculation, significance in the economy, impact on investments, and difference from from nominal rates. advertisement.

Mexico also had a high expected real interest rate of 6.05%, based off a nominal interest rate of 11%. Chile had a real interest rate of 4.92%, as well as a nominal interest rate of 11.25%.

Real Rate Of Return Formula & How To Calculate. ... For example, if a bond is yielding 5% and inflation is 3%, the expected real interest rate is ~2%.

Remember that nominal interest rates equal real interest rates plus the expected rate of inflation. After all, banks want to make a profit. As such, they must take it into account when they ...