Analyst Questions

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

HOW IT WORKS (EXAMPLE):

For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

For a thirsty person, drinking water serves to reduce a drive.

At the synapse between two neurons, electrical signals are converted into chemical signals. A synapse is the gap between the two neurons.

A postage stamp on the letters, parcels, ... for post will be on the corner of the post but it travels around the world to any address we want send that.

The chemical name of common is sodium chloride. Its chemical formula is NaCl.