Re: Why is a dollar today worth more than a dollar tomorrow?

2003-12-05 Thread Tyl
In order for the government to borrow money, they
would need to provide an incentive for the savers to
lend.  Example, if you want to borrow from me what
incentive would I have to lending you my money?


--- john hull [EMAIL PROTECTED] wrote:
 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?



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financial leverage

2003-10-30 Thread Tyl
Anyone know of a good way to take advantage of the
current interest rate?  I was thinking of borrowing a
lot of money and invest it in short term bonds then as
interest rate goes higher I would lock in long term
bonds then making money on the borrowed money.
The question now is how do you borrow this money?



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