From 87be7a0b35b11208fb4653679d860b131e957735 Mon Sep 17 00:00:00 2001 From: ronny abraham Date: Mon, 9 Dec 2024 17:16:13 +0200 Subject: [PATCH] update --- mba/ch44.org | 32 ++++++++++++++++++++++++++++++++ 1 file changed, 32 insertions(+) diff --git a/mba/ch44.org b/mba/ch44.org index baeace1..8d77e3f 100644 --- a/mba/ch44.org +++ b/mba/ch44.org @@ -32,3 +32,35 @@ - risk free rate = real rate of interest + inflation premium ** yield curve +- x axis: time +- y axis: interest + +- you can plot on that curve what the interest rate is going to be longer term + +** calculate inflation +- bureau of labor statistics +- bls.gov +- calculate how much stuff you bought in one year is worth at present + - https://data.bls.gov/cgi-bin/cpicalc.pl + +*** what is inflation +- to raise interest rates the gov sells bonds + - banks buy bonds + - bonds say the gov will buy back the bond at a rate +- this takes money out of circulation + - money is more scarce it is worth more + +- when they want to lower interest rates they buy bonds + - this puts more money in circulation + +*** most important tool of government +- if gov cant control the price of bitcoin, it has less power + +*** inflation has been negative at times +- so check out the CPI Inflation calculator +- https://data.bls.gov/cgi-bin/cpicalc.pl + + an-entire-mba-in-1-courseaward-winning-business-school-prof + +** basic needs to assess risks +- a mature cash rich company pays a lower debt