Sentences with phrase «percent nominal rate»

The answer given by this command is 13.65 percent, which is the aggregate, or real rate, and is higher than the 13 percent nominal rate.

Not exact matches

On the overall, companies in the S&P 500 pay a 26.2 percent effective rate, compared with the 35 percent top nominal rate in place now and the 20 percent where the reform bill would go.

Just as a k - percent rule requires a stable relationship between a monetary aggregate and nominal GDP (i.e., stable money velocity), a Taylor Rule needs a stable relationship between the policy rate and financial conditions.

While there are some signs of recognition such as the Fed's reduction in its estimated neutral rate from 4.5 percent to 3.0 percent during the last 2 years, the IMF's explicit use of the term secular stagnation in its World Economic Outlook, ECB president Mario Draghi's call for global coordination and greater use of fiscal policy, and Japan's indicated interest in fiscal - monetary cooperation, policymakers still have not made sufficiently radical adjustments in their world view to reflect this new reality of a world where generating adequate nominal GDP growth is likely to be the primary macroeconomic policy challenge for the next decade.

Over the last 12 months nominal GDP has risen at a rate of only 3.3 percent.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

Suppose that, instead of paying attention to the inflation rate, the Fed had set itself the task, from 1996 onward, of keeping nominal GDP growing at a steady rate of, say, 4.5 percent.

So, right now, markets are pricing at terminal Fed funds rate, nominal of 2.5 percent.

During the «Great Moderation» (1987 — 2006), under Fed chairman Alan Greenspan, the trend rate of growth of final demand, as measured by nominal final sales to domestic purchasers (FSDP), was 5.4 percent per year — split into real growth of 3 percent and inflation of 2.4 percent.

By historical standards, 2 percent is a small pay hike on a nominal basis — although, as noted, it is still ahead of the current and recent average inflation rate.

And, despite turning out 30 additional horsepower and a 45 percent higher EPA city fuel economy rating as compared to the conventionally - powered MDX SH - AWD, the MDX Sport Hybrid carries a nominal premium of only $ 1,500 over the conventional MDX SH - AWD ®.

Using the nominal 6 percent fixed rate, solving for r = (1 + 0.06 / 12) ^ 12 - 1, gets r = 1.0616778 - 1, or 0.061678; when changed to a percentage, it equals 6.1678 percent.

So for virtually every rate increase since Harry S. Truman was in the White House, nominal GDP was growing 4.5 percent or faster, with 112 occurring when it was above 5.5 percent.

On the other hand, a borrower who pays a fixed - rate mortgage of 5 percent would benefit from 5 percent inflation, because the real interest rate (the nominal rate minus the inflation rate) would be zero; servicing this debt would be even easier if inflation were higher, as long as the borrower's income keeps up with inflation.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

During that same time, the yield on the 10 Year Treasury note increased less than 1/2 of one percent; having a nominal effect on mortgage rates throughout the two year period.

After accounting for inflation, there's a one - in - three chance that you won't get your investment back with a cash savings account, reports Betterment, because nominal cash interest rates have recently been averaging around 1 percent or less.

During the past century, the average rate of inflation was 3.3 percent per year, reducing the nominal 5 percent earnings growth rate to a real growth rate of just 1.7 percent.

In other words, even though the nominal rate of return on your savings is 5 percent, the real rate of return is only 2 percent, which means the real value of your savings only increases by 2 percent during a one - year period.

Subtract this rate from the yield on nominal bonds - currently 4.75 percent for the 10 - year note - for a measure of the inflation expected over the term of the bond.

With current 10 - and 20 - year nominal Treasuries yielding about 2.4 percent and 3.4 percent, respectively, the break - even inflation rates are about 2.0 percent for the 10 - year and 2.2 percent for the 20 - year.

The projected year - one cap rate is 5.9 percent nominal (inclusive of upfront capital improvements) and 5.6 percent economic (inclusive of the assumed $ 200 per bed capital reserves, upfront capital improvements, loan assumption costs and transaction expenses).

This is due to low mortgage rates, which are almost an entire percentage point lower than last year, and a 1.4 percent increase in nominal family income from 2010 to 2011 — NAR projects a subsequent increase for 2012.