---
title: "Lecture 4 Note"
author: "Yiming Gong"
date: "2021-07-21T04:39:58Z"
link: "https://bookdown.org/yg484/lec_4_note/"
length_weight: "2%"
pinned: false
---

This is class note for lecture 4 on July 21th [...] It is a fact of life that $100 to be received after one year is worth less than
the same amount today. The main reason is that money due in the future or
locked in a fixed term account cannot be spent right away. One would therefore
expect to be compensated for postponed consumption. In addition, prices may
rise in the meantime and the amount will not have the same purchasing power
as it would have at present. Finally, there is always a risk, even if a negligible
one, that the money will never be received. Whenever a future payment ...
