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Present value of the benefit to refinancing

Question:

You currently have a 30-year fixed-rate mortgage financed at 7.25% on a $200,000 home. There are 25 years remaining on the mortgage. Your banker friend tells you that for a small fee (2% of the principal borrowed), you can refinance the remaining balance of your mortgage at a fixed rate of 5.75% for 25 years. What is the present value of the benefit (savings) to refinancing?

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## Q : Estimate the interest cp rate is treasury yield curve

Estimate the interest rate paid by P&G on the 5 30 swap in Section 25.8 if (a) the CP rate is 6.5% and the Treasury yield curve is flat at 6%.