What is the discount factor equal to? Please explain.
2. Do discount factors always have to be less than one? If so, why?
3. If you believe that interest rates will dramatically increase, should you select a loan that is payable upon maturity or select a loan that requires fixed annual payments?

Question

10-06-2024
Business

Answered

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What is the discount factor equal to? Please explain.
2. Do discount factors always have to be less than one? If so, why?
3. If you believe that interest rates will dramatically increase, should you select a loan that is payable upon maturity or select a loan that requires fixed annual payments?

Sagot :

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What is the discount factor equal to? Please explain.2. Do discount factors always have to be less than one? If so, why?3. If you believe that interest rates will dramatically increase, should you select a loan that is payable upon maturity or select a loan that requires fixed annual payments?

Sagot :

Other Questions

What is the discount factor equal to? Please explain.
2. Do discount factors always have to be less than one? If so, why?
3. If you believe that interest rates will dramatically increase, should you select a loan that is payable upon maturity or select a loan that requires fixed annual payments?