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Connecting  the  dots:  a  yield ... Zealand’s interest rates ARTICLES
Connecting the dots: a yield ... Zealand’s interest rates ARTICLES

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... expectations or forecasts of future events and use words such as “anticipate”, “estimate,” “expect,” “project” and other terms of similar meaning. Any or all forward-looking statements may turn out to be wrong, and actual results could differ materially from those expressed or implied in the forward ...
Screening for Cash-Rich Firms That Will Put Their Money to Good Use
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... helps to service the debt incurred acquiring the firm. A high cash position can also be a disadvantage. Cash is generally defined as cash plus marketable securities that are readily convertible into cash. This would consist of bank deposits and short-term instruments such as Treasury bills. The cash ...
working paper / xx/12 - Ministry of Social Development
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Ch16 - NYU Stern
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... Should you use a short-term or a long-term government bond rate as a riskless rate? The answer depends upon when your cash flows come due. Assume, for instance, that you are analyzing a five-year project, and you need a 5-year riskless rate. A sixmonth treasury bill is not riskless for a five-year t ...
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Equity Returns and Business Cycles in Small Open Economies Mohammad R. Jahan-Parvar
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... has gone along with a fall in real (inflation-adjusted) rates to persistently negative levels. Long-term rates have also trended down, albeit more gradually, over this period: in nominal terms, they fell from between 3–4% in 2009 to below 1% in 2016, on average (Graph 1, centre panel); in real terms ...
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... with the graph showing not even one more in the period from April to September 2004. Boasting about successful placement of the issue may be a bit off the point here. One would rather suspect that the bonds were bought by parties linked to ITI, such as the BRE Bank. The bond issue had an effect of h ...
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...  Controlling budgets to maintain equity balance – Cutting back to maintain balance, reducing staff at low times and increasing at peak, knowing when to order and when to hold back, moving company, stock and people around to reduce down outgoings or inflated department budgets where the workload is ...
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... between bondholders and stockholders is by increasing the amount of debt in the capital structure. b. The threat of takeover is one way in which the agency problem between stockholders and managers can be alleviated. c. Managerial compensation can be structured to reduce agency problems between stoc ...
Special Risks in Securities Trading
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... strength was influenced by the conditions of the banking system and the overall higher uncertainty. Earlier studies also reveal that interest rate channel is strong for the pre-crisis period and recommend the use of the interest rate as the operational target for monetary policy (Boediono, 1998, Sar ...
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... Transaction costs do not include transport costs. If location is a characteristic of the asset (as might be the case, for example, for a commodity), the price in the principal (or most advantageous) market shall be adjusted for the costs, if any, that would be incurred to transport the asset from it ...
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Can Risk Aversion Explain The Demand for Dividends?
Can Risk Aversion Explain The Demand for Dividends?

... of shares held in dividend-paying companies will be denoted δ. There is a normally-distributed innovation t with zero mean and variance σ2 to share demand in each period. An analytic solution will be derived for the one-period case. The investor will be taken to have utility with a constant coeffi ...
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Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
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