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Q: What is the relationship between interest rates and internal rate of return?
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What is the relationship between wacc and discount rate of return?

relationship between WACC and required rate of return.


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


Relationship between risk and return?

risk is pre-stage for return...


Example of 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.


What is the difference between return on capital and return on investment?

return on capital = earnings before interest and tax / capital employed * 100


What is a yield to maturity?

A yield to maturity is the internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.


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 flowsfinance_rate = interest rate that you pay on the cash flow amountsreinvestment_rate = interest rate that you receive on the cash flow amounts as they are reinvested


When it comes to investing what is the usual relationship between risk and reward?

When it comes to investing, one general relationship between risk and reward is that taking more risk is associated with a greater return. However, in many cases there is no relationship between the two. For example, even though stocks tend to have a higher return than bonds, taking that risk does not guarantee a better return.


Is there any relationship between return on equity and dividend yield?

if there is no growth in a firm the return of equity is equal to the dividend yield


What is the relationship between financial decision making and risk and return?

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What is the relationship between interest rate and savings?

there is negative relationship between interest rate and investments means that as interest rate falls investment rises.And the opposite is true when interest rate rises. Real interest rate helps to determine the trend of investment in an economy. When the interest rates are high, borrowing becomes quite expensive for the investors so they make less real investment. The high interest rates make it difficult to cover their expenditure because their products becomes less competitive in both the domestic and international market. On the other hand, if the interest rate is low, more and more investment take place in the economy which result in more production, more employment opportunities and increase in the potential GDP. Thus the real interest rate through their effect on investment improves growth and future living standards of a nation.


Are interest rate and rate of return the same?

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