Initial Interest Rate Loan Maturity (years) % Margin Above Index Adjustment Interval Points Interest Rate Cap LOAN 1 ? 20 3% 1 yr. 1% NONE LOAN 2 ? 20 - -- 1% LOAN 3 ? 20 3% 1 yr. 1% 1%/yr. LOAN 4 ? 20 3% 1 yr. 1% 3%/yr. With which loan in the above table does the lender have the lowest interest rate risk? O Loan 1 Loan 2 Loan 3
Initial Interest Rate Loan Maturity (years) % Margin Above Index Adjustment Interval Points Interest Rate Cap LOAN 1 ? 20 3% 1 yr. 1% NONE LOAN 2 ? 20 - -- 1% LOAN 3 ? 20 3% 1 yr. 1% 1%/yr. LOAN 4 ? 20 3% 1 yr. 1% 3%/yr. With which loan in the above table does the lender have the lowest interest rate risk? O Loan 1 Loan 2 Loan 3
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer fast I will rate for you sure....
![Initial Interest Rate
Loan Maturity (years)
% Margin Above Index
Adjustment Interval
Points
Interest Rate Cap
LOAN 1
?
20
3%
1 yr.
1%
NONE
LOAN 2
?
20
--
---
1%
LOAN 3
?
20
3%
1 уг.
1%
1%/yr.
LOAN 4
?
20
3%
1 yr.
1%
3%/yr.
With which loan in the above table does the lender have the lowest interest rate risk?
Loan 1
Loan 2
Loan 3.
Loan 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4bb3b00-a011-4f38-8fc7-b2440ef3107d%2Fa3206462-6805-4c36-9cbf-803279d872ae%2Fojuc2yq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Initial Interest Rate
Loan Maturity (years)
% Margin Above Index
Adjustment Interval
Points
Interest Rate Cap
LOAN 1
?
20
3%
1 yr.
1%
NONE
LOAN 2
?
20
--
---
1%
LOAN 3
?
20
3%
1 уг.
1%
1%/yr.
LOAN 4
?
20
3%
1 yr.
1%
3%/yr.
With which loan in the above table does the lender have the lowest interest rate risk?
Loan 1
Loan 2
Loan 3.
Loan 4
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