Comment on How the Rich Got RichparentComments−ccarpenterg14yInterest rates are the price of capitalI think that's inaccurate. The price of the capital is its cost of opportunity. Interest rates are the price of debt.−chimeracoder14yNo, interest rates are both. All costs are opportunity costs, so it's just two ways of looking at the same coin.−capex14yInterest rate (ideally) = rate of inflation + the risk involved + cost of opportunity.
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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.
No, interest rates are both. All costs are opportunity costs, so it's just two ways of looking at the same coin.
Interest rate (ideally) = rate of inflation + the risk involved + cost of opportunity.