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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
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
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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%
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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