## Real vs Apparent Return: How the IRR Calculation Works
If you've ever been tempted by a bond promising an 8% annual return but then discovered that your actual gain is much lower, you've experienced the dilemma of not knowing the **Internal Rate of Return (IRR)**. This indicator is precisely what differentiates investors who know how to read the market from those who simply trust the first number they see.
### **The Real Problem: Why the Coupon is Not the Whole Story**
When you invest in a bond, your return doesn't come solely from what the issuer promises to pay you each year. It also depe
View OriginalIf you've ever been tempted by a bond promising an 8% annual return but then discovered that your actual gain is much lower, you've experienced the dilemma of not knowing the **Internal Rate of Return (IRR)**. This indicator is precisely what differentiates investors who know how to read the market from those who simply trust the first number they see.
### **The Real Problem: Why the Coupon is Not the Whole Story**
When you invest in a bond, your return doesn't come solely from what the issuer promises to pay you each year. It also depe