The sale of new homes is tied closely to the level of confidence within the financial markets.
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The sale of new homes is tied closely to the level of confidence within the financial markets. A developer builds new homes in two European countries (A and B) and is concerned that there is a direct relationship between the country and the interest rates obtainable to build properties. To provide answers the developer decides to undertake market research to see what interest rates would be obtainable if he decided to borrow €300,000 over 20 years from 5 financial institutions in country A and 8 financial institutions in country B. Based upon the data in Table 7.22 do we have any evidence to suggest that the interest rates are significantly different?
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