Which of the following factors would not be expected to affect the nominal interest rate?

Question

Quizplus · Accepted Answer

The coupon rate on previously issued government bonds would not affect the nominal interest rate, as it is a fixed rate that has already been determined at the time of issuance. Factors that can affect the nominal interest rate include the supply and demand for loanable funds, the expected rate of inflation, and government spending and borrowing.

Which of the Following Factors Would Not Be Expected to Affect