Skip main navigation

New offer! Get 30% off your first 2 months of Unlimited Monthly. Start your subscription for just £35.99 £24.99. New subscribers only T&Cs apply

Find out more

How many interest rates are there?

In this video, the focus is on different types of interest rates used in corporate finance.

In this video, the focus is on different types of interest rates used in corporate finance.

It begins by defining interest rates and categorizing them into market-determined rates, entity-set rates, and negotiated rates. The Fisher equation is introduced to distinguish between nominal and real interest rates, emphasizing the impact of inflation on investment returns.

The video also explains the difference between simple and compounded interest rates, highlighting how compounding can significantly boost returns over time. Additionally, it touches on spot rates, forward rates, and the yield curve, providing insights into market expectations and their implications for economic conditions.

This article is from the free online

Corporate Finance: A Beginner’s Guide

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now