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Nominalzins

nominal interest rate

noun noh-mih-NAHL-tsins Rare
People & Society Money

Also means

coupon rate

Usage Note

Nominalzins is the stated interest rate on a loan or bond before adjusting for inflation or compounding effects. It contrasts with Effektivzins (effective rate), which includes fees and compounding. Consumers must always compare Effektivzinsen, not Nominalzinsen.

Examples

"Der Nominalzins des Kredits betrug vier Prozent, der Effektivzins jedoch 4,3 Prozent."

Natural Translation

The loan's nominal interest rate was four percent, but the effective rate was 4.3 percent.

Literal Translation

The nominal-interest-rate of-the loan amounted four percent, the effective-rate however 4.3 percent.

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