Assume that the risk- free rate is 5 percent and the risk premium for investing in mortgages
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Assume that the risk- free rate is 5 percent and the risk premium for investing in mortgages is 2 percent. Also assume that it costs approximately 1 percent to ser vice a mortgage loan. What will the discount factor for mortgages be? Appendix
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Related Book For
An Introduction To Financial Markets And Institutions
ISBN: 978-0765622761
2nd Edition
Authors: Maureen Burton ,Reynold F. Nesiba ,Bruce Brown
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