Yet many make it nonetheless. Similarly, our propensity to discount the future is so great it makes us spend money today rather than save for tomorrow. Investing our money doesn't just preserve ...

Each cash flow is present-valued using the same discount factor. This discount factor is the yield. Intuitively, discount and premium pricing make sense. Because the coupon payments on a bond ...

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 ...