Suppose that in the next three months the market rate of interest rises to 9 percent. a.

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Suppose that in the next three months the market rate of interest rises to 9 percent.

a. How much will Max 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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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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