Problem 1: Consider a typical $1,500,000 Canadian mortgage. Suppose that the current nominal interest rate is 6% and the maturity is set at 20 years….
Problem 1: Consider a typical $1,500,000 Canadian mortgage. Suppose that the current nominal interest rate is 6% and the maturity is set at 20 years. The rollover period is 2 years. a) Find the monthly payment on this mortgage. b) Suppose the nominal interest rate moves to 7% a day after the mortgage is issued. What is the market value of this mortgage? c) Suppose the […]