Explain the time preference for money concept

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Questions -

Q1. Explain the time preference for money concept.

Q2. If you have a bond paying 10% interest, and the market interest rate goes up to 12 %, would the value of your bond go up or down. Please explain.

Q3. Bob owns a liquor distillery and has return of 9 %, Joe owns a casino and has a return of 11% and Jill owns a railroad and has a return of 14 %. All three have the same risk in their businesses. What will two of these individuals do under these circumstances?

Q4. What is insider trading and why is it against the law.

Q5. What is the SEC and what is it mission?

Reference no: EM132755429

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