# Are interest rate and rate of return the same?

Yes, the interest rate and rate of return are exactly the same.

### What are the best returns for certificates of deposits?

This is subjective. The best rate of return would be an interest rate higher or equal to an interest rate one would get for the same amount of time with the same risk.

### Are interest rate and coupon rate the same?

Actually they mean the same thing but they are used in two totally different situations. Interest Rate is the money paid by a bank that has accepted a deposit from a Customer. Coupon Rate is the money paid by a person who has issued Bonds to people in return for the money they have given him.

### Real interest rate vs nominal interest rate?

Real interest rate = nominal interest rate- inflation rate. If a burger in 2007 is for $100 and if the same burger in 2008 is for $110 then Inflation rate is 10% for 2007 If interest rate in 2007 is 13% and in 2008 interest rate is 14% real interest would be only 14%-10% = 4% That is in real value the return on investment is only 4% because purchasing power of 10% is decreased… Read More

### Relationship between required rate of return and coupon rate on the value of a bond?

required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond

### What would be considered a decent return interest rate on auto loans?

How decent a return interest rate is on an loan is dependent on the individual person's idea of decent. One should also take into consideration personal factors that weigh into that return interest rate. What one may consider decent, may not be possible for him or her to receive.

### Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?

Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?

### How do you use excel function for Modified Internal Rate of Return?

The MIRR function returns the modified internal rate of return for a series of cash flows. The internal rate of return is calculated by using both the cost of the investment and the interest received by reinvesting the cash. The cash flows must occur at regular intervals, but do not have to be the same amounts for each interval. MIRR(range,finance_rate,reinvestment_rate) range = range of cells that represent the series of cash flows finance_rate = interest… Read More

### What is the nominal annual rate of return?

The nominal annual rate of return is calculated from the effective interest rate. It is typically a slightly lower percentage, and gives investors an idea of what their investment may return.

### What is the relationship between interest rate and savings?

There is a positive relationship between interest rate and savings. When interest rate is high people will save more in the banks or invest more so that they can get higher return on it. Higher the interest rate higher will be saving and vice versa.

### How are nominal interest rate and real interest rate related?

The nominal interest rate is the baseline interest rate attached to an investment. The real interest rate is connected to the rate of inflation over the duration of your investment. The basic formula for determining the Real Interest Rate is: Real Interest Rate = Nominal Interest Rate - Inflation Here's a basic example: If I buy a one-year, $100 savings bond with a 6% interest rate of return, I should receive $106 at the end… Read More

### What are the two different types of interest rates?

A fixed rate has the same rate of interest the entire life of the loan. A fluctuating rate varies with the prime interest rate.

### Is financial leverage positive if the interest rate on debt is lower than the return on total assets?

If a company's rate of return on total assets is ledd than the rate of return the company pays its creditors you have positive financial leverage.

### Define internal rate of return?

Money deposited in an interest bearing account has a rate of return. the institution will take that money and reinvest it so they can make money off of it as well. This rate of return on the internal investment is the internal rate of return, which is usually higher than that paid to the original investor.

### Write a program to calculate simple interest?

public double calculateSimpleInterest(double principal, int years, double rate){ double interest = 0; interest = (principal * years * rate)/100; return interest; } The above method will take the principal, rate of interest and no. of years and calculates the simple interest and returns the value.

### What are the major differences between compound interest loan and simple interest loan?

With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater. With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater. With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same… Read More

### Basic determinants of investment?

The immediate determinants of investment are: (a) the expected rate of return and (b) the real rate of interest.

### What is the standard interest rate on an interest bearing checking account at Chase bank?

The standard interest rate on an interest bearing checking account at a Chase bank is 0.01%. They have a variety of checking accounts with the same interest rate or less.

### Why the discount bond is not a bargain?

Because the rate of return it is still a function of market influences. Whether a bond is premium or discount is merely a reference of the coupon rate vs the real market interest rate. If the issuer sets their coupon rate below the market rate, it is said to be discounted. Set the coupon rate above the market interest rate and it is said to be premium. An invester pays below face value for a… Read More

### When a bonds stated interest rate is less than the market interest rate is the rate at a discount or premium?

When the coupon rate (the contractual periodical "interest" payments) are lower than the yield (the market required return) the bond will be in discount. This discount makes up for the low value of the coupons.

### Is it wiser to repay smaller debt of same interest rate first?

Yes, it would be wiser to repay smaller debt of same interest rate first.

### Develop a java application to calculate simple interest?

public doublecalculateInterest (int principle, int rate, int numOfYears) { doubleinterest = (principle * rate * numOfYears)/ 100; return interest; }

### Interest of 20 million dollars a year?

Interest on $20 millions depends on the percentage. If the interest rate is 5 percent, the return for the year $1 million.

### Are most deposits fixed rate or variable rate?

Deposits offer only a fixed rate of interest. Though this rate of interest gets changed once in a while, a deposit which was opened before this interest rate change does not get altered. It will continue to earn the same rate of interest as was promised when the deposit was opened.

### You nominal rate the same as true rate?

No. Nominal interest rate is the rate before adjustments for inflation.

### Distinguish between payback and average rate of return?

Payback is usually a specified amount at a specified time. If money is to be gained at an average rate of return, the amount of the return could fluctuate due to inflation or interest rates.

### Is simple interest the same as compound daily interest?

No. The "simple interest" method of calculation does not compound interest. It takes the annual interest rate and divides it by 365 to get the daily rate. The daily rate is then multiplied by the current balance to get the amount of interest that accrues per day. This interest is kept in a separate account from the principle, and interest does not accrue on the balance of that account. In compound interest, the principle and… Read More

### If you are borrowing which is best simple or compound interest?

If the rate of interest is the same, simple interest benefits the borrower. Compound interest charges (or pays) interest on the accrued interest as well as the principal amount. This is why the APR (annual percentage rate) may differ from the base interest rate on a loan, or on revolving credit balances.

### What is the difference between the natural state of interest and the bank rate?

In contemporary terms, the natural rate of interest is what businesses expect to earn on real investment. The bank rate is the return on financial assets in general and commercial bank loans in particular.

### Do All accounts receive the same rate of interest?

No. All accounts are different and thus have different risks and rewards. Thus, all accounts will accrue interest differently (although some may share the same interest rate).

### What is the difference between interest rate risk and reinvestment rate risk?

Reinvestment risk When interest rates are declining, investors have to reinvest their interest income and any return of principal, whether scheduled or unscheduled, at lower prevailing rates. Interest rate risk When interest rates rise, bond prices fall; conversely, when rates decline, bond prices rise. The longer the time to a bond's maturity, the greater its interest rate risk.

### How do you compare Diminishing Interest to Float Interest?

You have confused between the terms. Simple interest and interest at flat rate is one and the same. The other type of interest is diminishing balance or reducing balance. These are interests associated with loans or finances sought. Well a simple rule of thumb is that usually simple interest rate is about half of rate on reducing balance. For e. g. if rate at reducing balance is 12% then simple interest for the same will… Read More

### What is the relationship between stock prices and interest rates?

A stock's required rate of return is made up of two parts: the risk-free rate and the risk premium. As the government adjusts key interest rates, the risk-free rate will change. If the government raises rates, the risk-free rate will rise also. If nothing else changes, the stock's target price should drop because the required return is higher. The reverse is true. If interest rates fall, then the stock's target price should rise because the… Read More

### What is the difference between yield and coupon rate?

yield is the return on investment, for example dividend paid. coupon is the rate of interest related to bonds or debentures.

### What is interestrate?

An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage… Read More

### What is the primary emphasis of short term lenders?

fast return on money loans at a high interest rate

### How much interest would you earn of a 30000 investment?

Depends on how you invested it and what rate of return that investment delivered.

### What two factors are most important in determining the power of compound interest?

Time of investment, and rate of return

### Does Abbey Mortgage have good interest rates?

Abbey Mortgage are mortgages in the United Kingdoms. They have an interest rate of 4.2 percent. That is about the same as an american interest rate, so I would say yes, they do.

### Why would two investments with the same annual rate may not be equal with respect to the interest they return?

We can think of two ways that could happen: 1). The initial investment amounts (the principles) may be different. 2). Interest on the two investments may be compounded at different intervals.

### What is different about fixed rate mortgages?

The most important difference is the interest rate on the note remains the same through the term of the loan, instead of a common loan where the interest rate may adjust.

### How are interest rates calculated?

Calculating Interest: Principal, Rate and Time are Known--I= p r t http://www.calculator.net/interest-rate-calculator.html The level of interest rates in a free market economy are primarily determined by the rate of inflation, the demand for money, and the actions of the Federal Reserve. Lenders of money will generally demand what is known as a nominal interest rate which is equal to a real interest rate plus a premium to cover the inflation rate. The real, or inflation… Read More

### What is nominal interest?

Nominal Interest A nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate." " Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.

### What is the value for required rate of return?

The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.

### What is Government Bonds?

Essentially a term loan to the government. Interest (called a coupon) is usually a fixed rate of return.

### What are the determinant of investment?

There are several determinants of investment. They include, the return on the investment, the interest rate, and the taxes charged on the returns.

### Why Brazil is most favorable to invest?

Due to high interest rate of return on investment backed by the Government of Brazil

### What is the interest rate on a Walmart Discover card?

"The interest rate on a Wal Mart Discover card is 4.7 percent. Which is not a bad rate, it is a little bit high but at the same time it is the lowest in the credit world."

### Defrence between BPLR and Interest rate?

The Benchmark Prime Lending Rate (BPLR) is a base rate that is generally offered only to the best customers and is used for setting the interest rate for student loans (amongst other loans). The interest rate is typically equal to the BPLR plus some additional amount that helps balance the risk of the customer with the return enjoyed by the bank. For example, the BPLR may be 2.5%, however, the interest rate may be 3.25%… Read More

### What is the meaning of adjustable rate mortgages?

Adjustable rate mortgages are the less-stable version of a home mortgage. As opposed to a fixed-rate home mortgage, an adjustable rate home mortgage is not confined to the single interest rate that is adhered to by a fixed interest mortgage. For example, a fixed interest mortgage charges the same amount of interest regardless of how the prime interest rate for housing fluctuates. In contrast, an adjustable rate mortgage can fluctuate with market conditions, ultimately costing… Read More