You Answered Correct Answer The table below has rates for selected maturities provided for a particular...

 

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You Answered Correct Answer The table below has rates for selected maturities provided for a particular borrower based on their riskiness. That borrower just received a loan that will mature in 5 years They want to know if they refinance after four years for the remainder of the term, what rate will they expect to pay.on the refinanced loan? 4 Rate (%) 1.52 1.95 2.79 3.31 3.7 4.29 4.75 Term (Years) 1 2 5.27 margin of 3 4 5 6 7 Do not round any intermediate calculations. Type your answer in as whole number in decimal form with two decimal points. For example, if your answer is 14.5812%, or 0.145812, you would simply type 14.58 as your answer. rror +/-0.05 You Answered Correct Answer The table below has rates for selected maturities provided for a particular borrower based on their riskiness. That borrower just received a loan that will mature in 5 years They want to know if they refinance after four years for the remainder of the term, what rate will they expect to pay.on the refinanced loan? 4 Rate (%) 1.52 1.95 2.79 3.31 3.7 4.29 4.75 Term (Years) 1 2 5.27 margin of 3 4 5 6 7 Do not round any intermediate calculations. Type your answer in as whole number in decimal form with two decimal points. For example, if your answer is 14.5812%, or 0.145812, you would simply type 14.58 as your answer. rror +/-0.05

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To determine the expected rate that the borrower will pay on the refinanced loan after fo... View the full answer