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

2003-12-05 Thread Marko Paunovic
Let's see first what the risk-free interest rate really is. It depends on two conditions. One condition is that the borrower will certainly repay the money. The other condition is that the lender will certainly be alive to collect it when the time comes. That is probably the strongest reason

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

2003-12-05 Thread Marko Paunovic
- Original Message - From: Fred Foldvary [EMAIL PROTECTED] To: Marko Paunovic [EMAIL PROTECTED]; [EMAIL PROTECTED] Sent: Friday, December 05, 2003 21:58 PM Subject: Re: Why is a dollar today worth more than a dollar tomorrow? --- Marko Paunovic [EMAIL PROTECTED] wrote: In a risk-free