Suppose that in the next 3 months the market rate of interest rises to 9 per cent.

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Suppose that in the next 3 months the market rate of interest rises to 9 per cent.

(a) How much will Ian be willing to pay for the mortgage?

(b) What will happen to the value of Treasury bond futures contracts? Will the long or short position increase in value?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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