What is 'Internal Rate of Return (IRR)'?

More terms

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Clean price

The quoted price of a gilt, which excludes accrued interest

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Income statement

A summary of a company's income and expenses over a set period of time.

Bond

Learn what a bond is

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Internal Rate of Return (IRR)