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Annual interest payment and total principal payment

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1. You borrowed $400,000 to purchase home. Annual coupon rate on mortgage is 9% and payments are made monthly. The maturity of teh mortgage is 30 years. Determine annual interest payment and total principal payment for the 13th year of mortgage.

2. Bank America Merrill Lynch has the following foreign currency position in British pound: Assets equal to £300 000, liabilities are equal to £500 000. What is the expected loss or gain if the £ exchange rate depreciates by 11.0 percent?

Reference no: EM131873148

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