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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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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