Mortgage Index and Duration

Introduction

This case addresses the selecting of such method that is more convenient for the employer in order to make selection between two different capital investment opportunities from two different debt returns for the funding of Equity REIT to acquire property of amount 100,000,000.

Real Estate Investment Trust (REIT) is such kind of security that is traded as stock and is used for the investment in real estate mostly either as mortgages or through properties. While it is also traded on some major exchanges as well (Ralph, 2011). The benefit for using REIT is this that it gets ...