Solved: Illustrating the concept of time value of money, Finance Basics

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Illustrating the concept of time value of money

Problem 1. Describe the relationship that exists between the price of a bond and the bonds yield to maturity (YTM) Why does this relationship exist?

Problem 2. Explain the concept of time value of money. How is it applied in finance and why is it so important?

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Finance Basics: Illustrating the concept of time value of money

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