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bulgar [2K]
3 years ago
11

How does inflation affect investments?

History
1 answer:
ANTONII [103]3 years ago
6 0

Answer:

Rising inflation erodes the purchasing power of a bond's future (fixed) coupon income, reducing the present value of its future fixed cash flows. Accelerating inflation is even more detrimental to longer-term bonds, given the cumulative impact of lower purchasing power for cash flows received far in the future

Explanation:

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