Question: ANSWER QUESTIONS BELOW What do you think will happen with interest rates in the coming years? Do you expect them to continue to rise, and

ANSWER QUESTIONS BELOW

  1. What do you think will happen with interest rates in the coming years? Do you expect them to continue to rise, and what economic conditions might influence these changes?
  2. What is the current rate (approximately) for a 30-year fixed-rate mortgage? How will rising or falling interest rates affect a future home purchase?In what situation might you prefer a variable rate mortgage?
  3. Suppose that you inherited some 2.25% US Treasury bonds from your grandfather that mature in 2027. Although they were originally purchased at par (and will mature at $1,000), they currently have a market value of around $950 each.If you believe that interest rates will continue to rise, should you sell, hold, or try to buy more?Explain why.

Thank you!!!

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