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What is Understanding Interest Rates and Capital Costs about?

Chapter 6 discusses interest rates as a source of capital through equity and debt, detailing the balance sheet effects and payments to investors. It outlines fundamental factors affecting the cost of money, including production opportunities, time preferences, risk, and inflation, as well as the implications of default risk, liquidity premium, and maturity risk on interest rates. The chapter emphasizes the importance of understanding the term structure of interest rates for both borrowers and lenders in mak

Author

Rochelle Anne Opinaldo

Language

EN