Interest rate

Although interest rates may appear to be straightforward, they may be quoted and calculated in a number of different ways. This is why regulators have required the use of some standards, such as AER, and financial markets have evolved others (such as YTM).

The risk-free rate is important to investors as it is used for valuation.

It is often useful for investors to think in terms of real rather than nominal interest rates.

Some investments pay floating interest rates rather than fixed interest.