What is 'Internal Rate of Return (IRR)'? Definition & meaning

More terms

Bed & ISA

Understand what Bed and ISA is and how it works

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

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.

Depository

We look at what is a depository and what role they play in keeping markets work.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Dirty price

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

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Internal Rate of Return (IRR)