1. A reason not to refinance a loan is:
1) a decline in the market rate of interest
2) a higher level of income for the borrower
3) a desire to take some equity out of the property
4) to improve the amount of cash flows from an investment property
2. Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest rates increased?
A a short term fixed income financial asset (ex. short term bond)
B a long term fixed income financial asset (ex. long term bond)
C a long term variable interest rate income financial asset
D they would all be approximately equally susceptible to a decline in value.
E None of the other responses are correct