The internal rate of return (IRR) is a measure that allows for comparisons to be drawn between various investments. In technical terms, the IRR is the discount rate that sets the net present value of the investment to zero. It is of particular use in valuing bonds (the yield to maturity).

Article examines IRR through example compound/discount calculations and examination of income streams.

Hedging is a technique for locking in a price by dealing in futures- guarding against fluctuations in commodity values or exchange rates.