Examlex

Solved

A Second-Order Autoregressive Model for Average Mortgage Rate Is

question 187

Short Answer

A second-order autoregressive model for average mortgage rate is:
Ratei = -2.0 + 1.8(Rate)i-1 - 0.5 (Rate)i-2
If the average mortgage rate in 2008 was 7.0,and in 2007 was 6.4,the forecast for 2010 is ________.


Definitions:

Field Warehouse

A storage facility that is used to store goods that are under the control of a financing company until the loan secured by those goods is repaid.

Loan Against Inventory

A type of financing where a loan is given to a company based on the value of its inventory which serves as collateral.

Line of Credit

An arrangement between a financial institution and a client that establishes a maximum loan balance that the borrower can access.

Commitment Fee

A fee charged by a lender to a borrower for an unused credit line or undisbursed loan, serving as compensation for keeping funds available.

Related Questions