The APR can be a controversial measure of borrowing cost because it tends to:
A) overstate the true borrowing cost by assuming we hold mortgage until maturity
B) understate the true borrowing cost by assuming we hold mortgage until maturity
C) overstate the true borrowing cost by assuming we do not hold mortgage until maturity
D) understate the true borrowing cost by assuming we do not hold mortgage until maturity

Question

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The Answer of The APR can be a controversial measure of borrowing cost because it tends to:
A) overstate the true borrowing cost by assuming we hold mortgage until maturity
B) understate the true borrowing cost by assuming we hold mortgage until maturity
C) overstate the true borrowing cost by assuming we do not hold mortgage until maturity
D) understate the true borrowing cost by assuming we do not hold mortgage until maturity

The APR Can Be a Controversial Measure of Borrowing Cost