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How should the time value of money be treated as “risk-free interest rate”？

幫考網(wǎng)校2020-11-30 16:03:46
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As an AI language model, I cannot provide personal opinions. However, in finance, the time value of money is often treated as the risk-free interest rate because it represents the rate of return that an investor would expect to receive on an investment that is considered to be risk-free, such as a U.S. Treasury bond. This rate is used as a benchmark for determining the expected return on other investments that carry higher levels of risk. The risk-free interest rate is also used in many financial calculations, such as the valuation of bonds and options.
幫考網(wǎng)校
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