Find out your personal discount rate or rate of preferences
Problem: What is your personal discount rate or rate of preferences? I.e. how much would you pay for a promise of $1000 to be received one year from now? Would you discount it by 10%, 5%, etc? and why?
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Identify whether you let the person know, by your words or actions, you cared about his or her dilemma, even if you were not able to help in any other way.
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You devised a plan for Michelle so that she could be prepared for her negotiation with her boss. Clearly, Michelle is upset over having to switch shifts
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What is your personal discount rate or rate of preferences? I.e. how much would you pay for a promise of $1000 to be received one year from now?
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Treasury bonds with 5-year maturities offered a return about 8.65%; face value of $1,200; and 7.25% coupon rate. What would be the present value of bond?
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