(a) Residential mortgages may stipulate either a fixed rate or a variable rate. As a borrower, what...

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(a) Residential mortgages may stipulate either a fixed rate or a variable rate. As a borrower, what considerations might cause you to prefer one rather than the other?

(b) Why might holders of mortgage pass-through certificates wish the mortgages to have a floating rate?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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