To critically think about: The impact of the clause regarding the buyback of securities on the desirability of the security. Introduction: The time value of money implies that the cash in hand at present has a higher value than the cash receipt promised in the future. Hence, a person needs more money in the future to buy the same product at present.

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Chapter 4, Problem 7CQ

Summary Introduction

To critically think about: The impact of the clause regarding the buyback of securities on the desirability of the security.

Introduction:

The time value of money implies that the cash in hand at present has a higher value than the cash receipt promised in the future. Hence, a person needs more money in the future to buy the same product at present.

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