4 ms·
Interest rates are the price of capital I think that's inaccurate. The price of the capital is its cost of opportunity. Interest rates are the price of debt.
by ccarpenterg 14y ago
Interest rates are the price of capital
I think that's inaccurate. The price of the capital is its cost of opportunity. Interest rates are the price of debt.
- capex 14y agoInterest rate (ideally) = rate of inflation + the risk involved + cost of opportunity.
- chimeracoder 14y agoNo, interest rates are both. All costs are opportunity costs, so it's just two ways of looking at the same coin.