Interest rates generally reflect
the potential elects of initation
the level of risk in an investment
the real value of the investment
the amount of money invested

the level of risk in an investment

Explanation:

Interest rates show the percentage yield an investor will be gaining from undertaking a particular investment. All investments reward investors with regular returns that are expressed a percentage of the principal amount.  The higher the returns, the more attractive the investment.  Interest rates are the rewards or returns from an investment.

A high-interest rate is also indicative of the risk associated with the investment.  Generally, high-risk investments will offer a higher interest rate. Government bonds and treasury bills are the safest investment but offer lower interest rates. Corporate bonds are riskier but have high-interest rates.

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