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The present value of a $1000 payment received 2 years from now at 5% annual interest will be less than $900 because of
Collateral
An asset pledged by a borrower to secure a loan or other credit, and subject to seizure if the loan is not repaid according to the agreed terms.
Specific Assets
Assets identified and itemized separately for accounting, legal, or financial purposes.
Market Price
The prevailing market rate at which one can purchase or sell an asset or service.
Common Stock
Equity investments that represent ownership in a company and typically grant voting rights to shareholders.
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