Part 2: Loan Options
- Research the current mortgage interest rates for a 10-year, 15-year, 20-year, and 30-year loan.
- In Excel, graph the interest rates using years as the X-axis and interest rates as the Y-axis.
- Using the graph, describe the following:
- Type of yield curve presented in the graph
- Relationship between interest rates and number of years to maturity
- Impact that risk and inflation has on the interest rates as the maturity date is lengthened
Part 3: Recommendation
- Make a recommendation to Ms. Jacobsen on what mortgage loan to take (10-year, 15-year, 20-year, or 30-year).
- Justify your recommendation.