What is a 'Nominal Rate Of Return'
A nominal rate of return is the amount of money generated by an investment before expenses such as taxes, investment fees and inflation are factored in. For example, detailed data on a mutual might show a fund's nominal rate of return as 10%, but also show its return after taxes on distributions and sale of fund shares is only 7%. Investors should look beyond an investment's nominal rate of return to get a true idea of what their investment will earn.
BREAKING DOWN 'Nominal Rate Of Return'
Municipal bonds, for example, generally have a lower nominal rate of return than corporate bonds, but the nominal return and the aftertax return of Munis is usually identical since Munis are usually tax exempt, whereas income earned from corporate bonds will be subject to taxation. Corporate bonds are also subject to tax on capital gains when they are sold, giving them an actual rate of return that may be significantly lower than their nominal rate of return.

AfterTax Real Rate Of Return
The actual financial benefit of an investment after accounting ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Nominal Interest Rate
The interest rate before taking inflation into account. The equation ... 
Nominal Yield
The coupon rate on a bond. The nominal yield is the interest ... 
Nominal Value
The stated value of an issued security. Nominal value in economics ... 
Nominal Quotation
A quote generated by a futures exchange or broker for contracts ...

Investing Basics
What Does Nominal Mean?
Nominal refers to an unadjusted value or change in value. 
Economics
Understanding Interest Rates: Nominal, Real And Effective
Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan ... 
Investing Basics
What is a Nominal Value?
The nominal value of a security, such as a stock or bond, remains fixed for the duration of its life. 
Term
What's a Real Rate of Return?
A real rate of return is an annual percentage investment return thatâ€™s adjusted for inflation, taxes or other factors. 
Professionals
Bond Yields
A bond’s yield is the investor’s return for holding the bond. Many factors affect the yield that an investor will receive from a bond such as: Current interest rates Term of the bond ... 
Retirement
Inflation: Inflation And Investments
When it comes to inflation, the question on many investors' minds is: "How will it affect my investments?" This is an especially important issue for people living on a fixed income, such as retirees. ... 
Professionals
Bond Yields
FINRA/NASAA Series 66: Section 2 Bond Yields. This section discusses different bond yields: yield to maturity, yield to call, current yield, real interest rate 
Economics
Interest Rates: Nominal and Real
An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardstick for measuring how much return lenders will get. However, ... 
Bonds & Fixed Income
Introduction To Treasury InflationProtected Securities (TIPS)
If you want to protect your portfolio from inflation, all you need are a few TIPS. 
Professionals
Rates of Return
FINRA/NASAA Series 66 Section 1  Rates of Return. In this section internal rate of return (IRR), real return, expected return and riskadjusted return.

How do nominal interest rates in finance differ from the nominal rate of interest ...
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What is the difference between real and nominal interest rates?
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Is the nominal value of a security ever also the real value?
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If markets give information on value through price, how can nominal values be out ...
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