Wells Fargo currently has the following rate offerings for 15-year fixed rate mortgages ($1,000,000 loan, monthly payments, constant payments): Points Interest rates 5.500% APR 1 year YTM 5 year YTM 0 5.500% 5.500% 0.25 5.375% 5.413% 5.439% 0.5 5.250% 5.379% 1 5.000% 5.257% Payment $ 8,171 $ 8,105 $8,039 $ 7,908 Please evaluate the following statement based on the provided information (do not make any calculations): W X Y N Statement: If your horizon is 6-years, you should take loan Z. O True O False 5.327% 5.153% 5.500% 5.638% 5.776% 6.055% 10 year YTM 5.500% 5.417% 5.335% 5.169%
Wells Fargo currently has the following rate offerings for 15-year fixed rate mortgages ($1,000,000 loan, monthly payments, constant payments): Points Interest rates 5.500% APR 1 year YTM 5 year YTM 0 5.500% 5.500% 0.25 5.375% 5.413% 5.439% 0.5 5.250% 5.379% 1 5.000% 5.257% Payment $ 8,171 $ 8,105 $8,039 $ 7,908 Please evaluate the following statement based on the provided information (do not make any calculations): W X Y N Statement: If your horizon is 6-years, you should take loan Z. O True O False 5.327% 5.153% 5.500% 5.638% 5.776% 6.055% 10 year YTM 5.500% 5.417% 5.335% 5.169%
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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Transcribed Image Text:Wells Fargo currently has the following rate offerings for 15-year fixed rate mortgages ($1,000,000 loan, monthly payments, constant payments):
Points
Interest rates
5.500%
0
0.25
5.375%
0.5
5.250%
1
5.000%
W
X
Y
Z
Payment
$ 8,171
$8,105
$ 8,039
$ 7,908
True
False
Statement: If your horizon is 6-years, you should take loan Z.
APR
5.500%
5.413%
5.327%
5.153%
1 year YTM 5 year YTM 10 year YTM
5.500%
5.500%
5.439%
5.417%
5.379%
5.335%
5.257%
5.169%
Please evaluate the following statement based on the provided information (do not make any calculations):
5.500%
5.638%
5.776%
6.055%
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