The St. Louis Federal Reserve Board has files listing historical interest rates on their Web site www.stlouisfed.org.
Question:
The St. Louis Federal Reserve Board has files listing historical interest rates on their Web site www.stlouisfed.org. Find the link for “FRED®” (Federal Reserve Economic Data). You will find a listing for the Bank Prime Loan Rate. The file lists the monthly prime rates since January 1949 (1949.01). What is the most recent prime rate? What is the highest prime rate over this period? If you buy a house for $150,000 at the current prime rate on a 30-year mortgage with monthly payments, how much are your payments? If you had purchased the house at the same price when the prime rate was at its highest, what would your monthly payments have been?
Step by Step Answer:
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan