This work provides an integration of the financial and economic
aspects of the interest rate. It depicts how the interest rate
operates in the macro-economy to set the supply and the allocation
of capital and how it functions on the micro-economic level to
optimize capital decision-making. It describes the function of the
financial markets in setting the supply and cost-of-funds to
various users, of estimating a reasonable cost of capital for
operational purposes of business firms and public sector
authorities, and the application of discounting and present-value
methods to financial and investment decisions and strategies.
This work is unique in presenting seamless coverage of the
function of the interest rate across varying markets. It will be of
interest to scholars and students in economics and finance.
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