Necessary rate of return, also known as minimum necessary rate of return or minimum required rate of return, indicates the lowest rate of return that investors can reasonably demand for an asset. When determining the intrinsic value of bonds, it is necessary to estimate the expected monetary income and the appropriate rate of return required by investors (called "necessary rate of return"), which is the lowest rate of return required by investors for bonds. Necessary rate of return, also known as minimum necessary rate of return or minimum required rate of return, indicates the lowest rate of return that investors can reasonably demand for an asset.

The content of this article comes from People's Republic of China (PRC) Financial Code: Applied Edition published by China Law Publishing House.