You currently have a 5 year adjustable variable rate mortgage which is 4 years into the adjustment period. The current interest rate is 3.5% per annum, and the rate is indexed to the 10 year
Treasury note which is currently yielding 2.15%. Most financial forecasters are anticipating rate increases over the 2016-2017 period, but there is no consensus on the total amount of the increases. Given the interest rate environment, what would be the best course of action for your mortgage?
A) Double up on payments and pay it off in half of the term.
B) Refinance at the conventional 30 year fixed rate currently offered at 3.75%.
C) Stick with your existing mortgage since it is currently 3.5% and below the offered fixed rate.
D) Refinance into a 1 year ARM so that when rates decrease you will be in a better position.
Answer: B
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Alyeska salmon Inc, a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering
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Which of the following is NOT usually true about employee stock options?
A. There is a vesting period B. They can be sold to other employees C. They are often at-the-money when issued D. Their value is currently a charge to the income statement