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The time value of money element is already part of the settlement price of the futures contract - the market has to include that aspect of valuation when deciding how much to buy and sell the contract for. It may indeed be the value you provided, if nothing else happens in the market, and no new information comes to light. Of course this never happens, so ...


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Yes, fixed rate mortgages should/will drop as the bank of England rate drops, it will likely be small though, as banks are already loaning on very thin margins (in some cases in UK housing market, close to if not below inflation). However, it is worth noting that locking in 'preferential' mortgage rates can be a huge trap: low interest rates generally ...


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I am aware that stocks pay dividends and not interest, but aren`t the dividends calculated to a % yield of the underlying stock which is converted to a dividend yield which is the same as interest earned? No. A company pays a dividend based on their accumulated profits. They don't look at the current price of the stock to determine the amount of the ...


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So are we mostly relying on the growth of the market and consistent periodical investing instead of relying on the compound interest effect? Yes. Dividend Irrelevance Theories suggest that the decision of whether to Pay Dividend depends which on which return is higher: A company pays dividend to shareholder, who then invests the dividend in the broad ...


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