Re: Economic Rent in Terms of Risk Free Interest Rate

In article <1126542005.941625.171820@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
jim_bowery@xxxxxxxxxxx wrote:

> How is modern portfolio theory's use of the risk free interest rate
> related to the calculation of economic rent?

Hardly anybody that posts here knows what they are talking about. I'm
not sure what "modern portfolio theory" is. But I wonder if it has
something to do with the following simple idea:

Do you how to calculate the price of a risk-free bond, given the risk-
free interest rate, the dividend payments from the bond, and the period
over which these payments are made.

When the interest rate goes up, the price of a bond does what? Why and
how is this related to the above formula?

--
Mostly economics: <http://www.dreamscape.com/rvien/#PublicationsForFun>
r c
v s a Whether strength of body or of mind, or wisdom, or
i m p virtue, are found in proportion to the power or wealth
e a e of a man is a question fit perhaps to be discussed by
n e . slaves in the hearing of their masters, but highly
@ r c m unbecoming to reasonable and free men in search of
d o the truth. -- Rousseau
.

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