Question
. Suppose you have two offers on the mortgage in problem 3 assume loan amount is 100000 : an interest rate of 5% or interest
. Suppose you have two offers on the mortgage in problem 3 assume loan amount is 100000 : an interest rate of 5% or interest rate of 4% with 1 discount points. If you intend to stay in the house for 7 years, which offer do you accept, %5 or 4% with 1 discount points? Why?
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Fixed Income Securities Valuation Risk and Risk Management
Authors: Pietro Veronesi
1st edition
0470109106, 978-0470109106
