What is another name for the profit made from an investment, expressed as an interest rate or discount rate?

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The term that refers to the profit made from an investment, expressed as an interest rate or discount rate, is yield. Yield specifically indicates the earnings generated and realized on an investment, which is often shown as a percentage of the investment’s cost or market value. This concept is crucial for investors as it encapsulates the effectiveness of an investment relative to its cost.

Return on investment, although it does reflect profitability, typically involves a broader calculation that may not always express the profit in direct percentage terms as yield does. It focuses on the overall return rather than a specific rate over time. Therefore, while both terms relate to investment performance, yield is the one that is specifically defined in the context given.

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