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Lecture Money and capital markets: Chapter 4 – Peter S. Rose, Milton H.Marquis

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Lecture Money and capital markets: Chapter 4 – Peter S. Rose, Milton H.Marquis

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Chapter 4 The future of the financial system and the money and capital markets. After studying this chapter you will be able to understand: The value of a payment depends on when it is made, present value can be used to value any stream of future payments, the real interest rate is the nominal interest rate minus expected inflation. It expresses the interest rate in terms of purchasing power rather than current dollars.

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