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Essay

Time Value of Money

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Issue:

Business

 

Written by:

Anonymous

 

Date added:

July 6, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2146

 

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6729 times

 

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Essay content:

This will be the compensation for not spending it right now. For that to happen, some basic concepts of applications will be used. These concepts will be covered at here and also, the components of a discount/interest rates. Applications of Time Value of Money To better understand the applications for TVM, first it is important to know the concept for capital market, which is the market where people, companies, and governments with excess of funds, that was saved from regular income, transfer those funds to people, companies or governments with shortage of funds, because they spent more than they expected, promoting economic efficiency, directing capital to productive uses...
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They are divided into primary and secondary market. Primary and Secondary Market The primary market is where new securities, such as stocks and bonds, are issued. Since this market is limited to issuing new securities only, the secondary market is more important than this one. The secondary market includes stock exchanges, bonds markets, and future and options markets, among others, that deal in the trade of securities...
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