Why is the money given time value
Why is the money given time value?
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a) Positive interest rates show that the money has time value. If one person lets another person borrows money, the first will person need the compensation in exchange for dropping current consumption. b) The individual who has borrowed the money is ready to pay the increase current consumption. The return rate which is required for an investment shows the pure time value of money, any risk premiums present and an adjustment for expected inflation.
Elucidate the factors which affect the choice of a minimum cash balance amount.
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If a convertible bond has a conversion ratio of 20, a coupon rate of 8 percent, a face value of $1,000 and the market price for the company’s stock is $15 per share, what is the convertible bond’s conversion value?
Calculate the 30-, 90-, & 180-day forward cross exchange rates among the German mark and the Swiss franc by using the most current quotations. Describe the forward cross-rates in "German" terms. The formulas we desire to use are: &n
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