Components or variables of time value of money related

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Reference no: EM131980576

1. The ________ determines a bond's cash flows while its _______ determines the discount rate.

holding period return; yield-to-maturity

coupon rate; realized yield

coupon rate ; yield-to-maturity

yield-to-maturity; coupon rate

2. How are the various components or variables of time value of money related? When one goes up what happens to another? Does it increase or decrease? Explain the relationship (direct or inverse) between:

Present value and future value;

Present value and interest rate;

Present value and time;

Time and interest rate;

Time and future value; and

Interest rate and future value.

Reference no: EM131980576

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