For some reason, I can't get it straight in my head why the risk-free rate of interest would be higher than zero.
Does it really come from the fact that some people wish to consume today but can't, so they purchase current consumption from suppliers, i.e. lenders, and the interest rate is just the price in that particular market? Or is there something different, or deeper, or whatever going on? __________________________________ Do you Yahoo!? Free Pop-Up Blocker - Get it now http://companion.yahoo.com/