there are two factors that complicate interest rates:
Answer
Inflation
Risk
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#reading-6-time-value-of-money
Question
there are two factors that complicate interest rates:
Answer
?
Tags
#reading-6-time-value-of-money
Question
there are two factors that complicate interest rates:
Answer
Inflation
Risk
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Subject 1 Time Value of Money and Interest Rates urrent to future consumption, the risk-free interest rate is the rate of compensation required to postpone current consumption. For example, the interest rate paid by T-bills is a risk-free rate of interest.
In an uncertain world, <span>there are two factors that complicate interest rates:
Inflation: When prices are expected to increase, lenders charge not only an opportunity cost for postponing consumption but also an inflation premium that takes into accoun
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