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CHAPTER 4, Part 2, Part 3: THE DISTINCTION BETWEEN
INTEREST RATES AND…
CHAPTER 4
Lưu ý
- Positively related to wealth
- Positively related to the expected return on the asset relative to alternative assets
- Negatively related to the riskiness of the asset relative to alternative assets
- Positively related to the liquidity of the asset relative to alternative assets
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Trái phiếu vĩnh viễn (CONSOL OR PERPETUITY)
- A bond with no maturity date that does not repay principal but pays fixed coupon payments forever
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Tỷ suất sinh lời (RATE OF RETURN)
- The payments to the owner plus the change in value expressed as a fraction of the purchase price
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Lãi suất danh nghĩa và lãi suất thực (DISTINGUISHING BETWEEN NOMINAL AND
REAL INTEREST RATE)
- Nominal interest rate (𝑖): makes no
allowance for inflation
- The real interest rate (ir): is defined as the nominal interest rate minus the expected rate of inflation
- When the real interest rate is low, there are greater incentives to borrow
and fewer incentives to lend.
- The real interest rate is better indicator of the incentives to borrow and lend
- i: nominal interest rate
- ir: real interest rate
- 𝜋^e: expect inflation rate
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