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  3. a lender holds a 30 year fixed-rate loan at 7% int

A lender holds a 30 year fixed-rate loan at 7% interest. Which of the following...

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Accounting

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A lender holds a 30 year fixed-rate loan at 7% interest. Which of the following is true about that loan 15 years later, when an investor wants to purchase the loan and market interest rates are 5% ? The market value of the loan is lower than the book value of the loan because the market rate of interest is lower than the interest rate on the loan. The market value of the loan is higher than the book value of the loan because the market rate of interest is lower than the interest rate on the loan. The market value of the ban is higher than the book value of the iban because the market rate of interest is higher than the interest rate on the loan. The market vaiue of the ican is lower than the book value of the iban because the market rate of interest is higher than the intereat rate on the loan

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