That is the premise on which temporal discounting, a major tool in economic theory, is based on. If we want to compare present and future payoffs, we must account for the fact that we tend to value ...

The Journal of Business, Vol. 79, No. 2 (March 2006), pp. 941-961 (21 pages) In this paper, we construct a new variance bound on any stochastic discount factor (SDF) of the form \documentclass{aastex} ...

The percentage rate required to calculate the present value of a future cash flow. For example if investing at 4% interest, then the present value is discounted by 4% as it is worth less than future ...

Par and zero coupon curves are two common ways of specifying a yield curve. Par coupon yields are quite often encountered in economic analysis of bond yields, such as the Fed H.15 yield series. Zero ...

Factor rates are a fixed fee multiplied by the entire loan up front, which means that you’ll pay the entire fee even if you pay the loan off early To compare loans with traditional interest rates and ...