From Question 6, if an investor believes that the short-term…

From Question 6, if an investor believes that the short-term interest rate one year from now is 3.5% and has the following two options:  Option A: 1 2-year investment, one investment with a maturity of two years Option B: 2 1-year investments, two investments with a maturity of one year Which option is better?  Explain.  

From Question 9, due to the continuous decline in interest r…

From Question 9, due to the continuous decline in interest rates, the same borrower can refinance the 30-year mortgage in the amount of $250,000 at 4%.  If the refinance cost is $2,500 and the borrower plans to move out in 10 months, should the borrower refinance the mortgage?  Explain. 

A resident of Mississippi who is in a 10% tax bracket is pro…

A resident of Mississippi who is in a 10% tax bracket is provided with the rate of return on the following two investments: 30-year AA corporate bond = 6% 30-year AA bond issued by Oktibbeha County in the state of Mississippi = 5% Which investment is better?  Explain.