Which of the following is not a consideration when deciding whether to prepay one's mortgage?
A)The after-tax interest cost on the debt retired should be compared with the after-tax return on investment alternatives.
B)The riskiness of prepayment and investment alternatives.
C)Marketability risk.
D)Liquidity risk.
E)All of the above are considerations.

Question

Quizplus · Accepted Answer

Marketability risk is not a consideration when deciding whether to prepay one's mortgage, whereas the other options listed (after-tax interest cost, after-tax return on investment, riskiness, and liquidity) are all important factors to consider.

Which of the Following Is Not a Consideration When Deciding