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capriciossa capriciossa
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A month ago
You have just obtained a $150,000 10-year 6% fixed-rate mortgage. The mortgage is amortized over 25 years. The interest rate is compounded semi-annually and you make monthly payments at the end of each month.
Immediately after you signed the paperwork, mortgage rates dropped to 5%. Your bank has offered you the opportunity to renegotiate the mortgage for a penalty of $10,000. Should you take this opportunity? Assume your opportunity cost equals the mortgage rate.
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Corporate Finance

Corporate Finance


Edition: 5th
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studytimestudytime
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capriciossa Author
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A month ago
Brilliant
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Yesterday
Good timing, thanks!
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2 hours ago
This helped my grade so much Perfect
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