Maurice Tutor

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Category > Management Posted 09 Oct 2017 My Price 3.00

fixed-rate mortgage

Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. An S&L issues this mortgage on April 1 and retains the mortgage in its portfolio. However, by April 2 mortgage rates have increased to a 9.5% nominal rate. By how much has the value of the mortgage fallen?

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Maurice Tutor
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Status NEW Posted 09 Oct 2017 01:10 PM My Price 3.00

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