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The current market for notes may call for a yield in excess of the face rate of the note. We analyze each monthly payment you receive and calculate its value into the future. $100.00 today is worth more than $100.00 due to be received in five years. Looking back 15 to 20 years ago, we could go to the movies for what? about $.50, right! And gasoline was about $.65 a gallon? Now look at what we pay. This is what we mean when we say dollars today are worth more than dollars in the future. So the "time value of money" must be factored into the price.
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