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Inflation supply - PowerPoint PPT Presentation

The value of any asset can be found as the present value of its expected future cash flows,

The value of any asset can be found as the present value of its expected future cash flows, CFt, discounted at the rate K: . The discount rate depends on: 1. The riskiness of the cash flows, which reflect default risk,maturity (interest rate) risk, and liquidity.

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Inflation supply - PowerPoint PPT Presentation

The value of any asset can be found as the present value of its expected future cash flows,