> This is not true. One of the best test for predicting a child success is seeing if they will defer a treat now for more treats later. Many people have the sacrifice now for a better future instinct.
Surely, any intelligent child would factor in the rate of interest (additional treats earned per unit of time) and bond price (how many treats are sacrificed right now) before making their decision. Automatically saying yes to more treats later is analogous to not caring whether you earn 0.1% interest or 10%, and that's certainly not intelligent.
Promising more treats later in exchange for treats now is exactly what a bond is, and any wise investor would factor in rate of interest/coupon rate.
Surely, any intelligent child would factor in the rate of interest (additional treats earned per unit of time) and bond price (how many treats are sacrificed right now) before making their decision. Automatically saying yes to more treats later is analogous to not caring whether you earn 0.1% interest or 10%, and that's certainly not intelligent.
Promising more treats later in exchange for treats now is exactly what a bond is, and any wise investor would factor in rate of interest/coupon rate.