Many people in our society invest in bonds. Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost. This is the transaction value of bonds. When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why CEOs...
No matter how hard you work or how busy you become, it’s essential to maintain initiative in your life. When I lose control of my life to others, I feel as though I’m living a life of servitude. The most important way to preserve initiative in life is to consistently take action, even if it’s small, as part of my daily routine. Theologian Karl Paul Reinhold Niebuhr prayed: “Let me do my best in what I have to do, give me the courage to give up what I cannot do, and give me the wisdom to judge the two apart.”
- Joseph’s “just my thoughts”
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