Fixed rate and Return: Difference between pages

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imported>Doug Williamson
m (Link with Semi-annual basis page.)
 
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Interest calculated as a constant prespecified percentage of the principal amount, and payable at prespecified intervals, often semi-annually or annually.
The surplus of the amount received back from an investment, over the initial amount invested.


Also known as fixed rate interest.  
To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.
 
Returns can be negative. 
 
Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.




== See also ==
== See also ==
* [[Fixed exchange rate system]]
* [[Effective annual rate]]
* [[Fixed rate bond]]
* [[Semi-annual basis]]
* [[Fixed rate payer]]
* [[Holding period return]]
* [[Floating rate]]
* [[Performance spread]]
* [[Portfolio investment]]
* [[Rate of return]]
* [[Rewarded risk]]
* [[Risk]]
* [[Total return]]
 
[[Category:Investment_Appraisal]]

Revision as of 14:55, 19 October 2013

The surplus of the amount received back from an investment, over the initial amount invested.

To facilitate comparisons, return is usually expressed as a percentage of the initial amount invested, most commonly as an effective annual rate of return.

Returns can be negative.

Negative returns mean that the amounts received back from an investment are less than the amounts initially invested.


See also