function calculateRiskFreeRate() {
var governmentBondYield = parseFloat(document.getElementById("governmentBondYield").value);
var inflationRate = parseFloat(document.getElementById("inflationRate").value);
var resultDiv = document.getElementById("result");
if (isNaN(governmentBondYield) || isNaN(inflationRate)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
// The real risk-free rate can be approximated by the nominal risk-free rate (government bond yield) minus the inflation rate.
// A more precise formula (Fisher Equation) is (1 + nominal rate) / (1 + inflation rate) – 1,
// but for practical purposes, especially with small percentages, simple subtraction is often used.
// We'll use the approximation for simplicity as requested by typical calculator designs.
var riskFreeRate = governmentBondYield – inflationRate;
resultDiv.innerHTML = "Nominal Risk-Free Rate (Government Bond Yield): " + governmentBondYield.toFixed(2) + "%" +
"Expected Inflation Rate: " + inflationRate.toFixed(2) + "%" +
"
Approximate Real Risk-Free Rate: " + riskFreeRate.toFixed(2) + "%";
}
.calculator-container {
font-family: Arial, sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0,0,0,0.1);
}
.calculator-inputs h2, .calculator-results h3 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.input-group {
margin-bottom: 15px;
display: flex;
align-items: center;
justify-content: space-between;
}
.input-group label {
margin-right: 10px;
flex-basis: 50%;
text-align: right;
}
.input-group input {
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
width: 50%;
box-sizing: border-box;
}
.calculator-inputs button {
display: block;
width: 100%;
padding: 10px;
background-color: #4CAF50;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
margin-top: 20px;
}
.calculator-inputs button:hover {
background-color: #45a049;
}
.calculator-results {
margin-top: 30px;
padding: 15px;
background-color: #f9f9f9;
border: 1px solid #eee;
border-radius: 4px;
}
#result p {
margin-bottom: 10px;
line-height: 1.5;
}