Under a normal upward sloping yield curve scenario,fifteen year fixed-rate mortgages should be priced _________ thirty-year fixed-rate mortgages.

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Under a normal upward sloping yield curve scenario, 15 year fixed-rate mortgages should be priced less than 30-year fixed-rate mortgages. This is because the longer the term of the mortgage, the more sensitive it is to changes in interest rates. As such, lenders have to price in the additional risk of interest rate fluctuations over a longer period of time for a 30-year mortgage, leading to a higher interest rate compared to a 15-year mortgage.

Under a Normal Upward Sloping Yield Curve Scenario,fifteen Year Fixed-Rate