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For a 30years, $100,000 amortized loan with an fixed rate APR of 10% compounded monthly, which of the following statements(s) regarding this mortgage is most
For a 30years, $100,000 amortized loan with an fixed rate APR of 10% compounded monthly, which of the following statements(s) regarding this mortgage is most correct The monthly payment will decline over time The proportion of the monthly payment which represents interest will be lower for the last payment than for the first payment on the loan. The total dollar amount of principal being paid off each month gets larger as the loan approaches maturity. Statement a and c are correct. Statement b and c are correct. Assume the current 1-month, T-still rate is 4.0%. If it, is priced correctly (i. e. market expectations are generally correct). what can be implied about the expected inflation rate? 2.0% 3.0% 4.0% 5.0% higher than 4.0% You just bought a 30-year U.S. Treasury. Which of the following statement is most correct: Reinvestment Risk is a more serious concern than its Interest Rate Risk. Interest Rate Risk is a more serious concern than its Reinvestment Risk Both Reinvestment Risk and Interest Rate Risk are equally serious concerns when holding this treasury. Both Reinvestment risk and Interest Rate Risk are not risk concerns in this treasury. Both default risk and liquidity risk are more serious concerns than the above-mentioned risks
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