What is the 'time value of money'? Definition & meaning

More terms

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Base rate

What's the base rate?

Compound interest

Understand what compound interest means and how it's calculated

Yield curve

A graphical representation of interest rates over time

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

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Time Value of Money