Annual interest rate on all loans

Assignment Help Finance Basics
Reference no: EM133071967

The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 12% and all loans require monthly payments.

Reference no: EM133071967

Questions Cloud

Draw profit diagram describing position profit : Problem 1: You anticipate that the volatility of the IBM stock will increase over the course of next year, but you do not have a strong view about future direct
How much do you need to put aside today : If your local bank offers 10% interest on your deposit, how much do you need to put aside today to buy the car 5 years (n=5) from now
Calculate risk-neutral probability of up : Consider a stock whose current price is $200 per share. You would like to value an American call option on this stock that matures in two years. Assume that the
Tips for podcasting : Create a script for your podcast to help you meet the time requirement and to ensure you cover all the requirements of the assignment.
Annual interest rate on all loans : The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average balance of $100,000 each with 1% origination f
What is the remaining maturity : Group A has issued a 5.10% annual coupons bond, which are now selling at 89.52% of par value and a yield to maturity of 6.40%. What is the remaining maturity (i
Capitalized monthly on the initial payment : You buy an apartment appraised today at 2,000 UF. You will pay it with a down payment of 30% of the total value (consisting of 100 UF per day and 6 monthly paym
Determine the amount by which net income would be misstated : Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.)
Discusses the elements from your outline : Discusses the elements from your outline that will be covered in your course project paper.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the use of real and nominal discount rates

Explain the use of real and nominal discount rates in discounting cash flow. Which is used more often and why?

  Calculate the present value of net benefits

New City is considering building a recreation center. The estimated construction cost is $12 million with annual staffing and maintenance costs of $750,000.

  Why do efficient markets benefit society

Suppose you are shopping for a new automobile. You find the same car at two dealers but at different prices. Is the law of one price being violated? Why or why not?

  What is the impact of a stock purchase on a company

Does this suggest another use for excess cash? (And: What are the alternative uses for excess cash? And what does each use imply about the firm?)

  What types of mutual funds might be considered

What types of mutual funds might be considered by the Brocks for their investment portfolio?

  Calculate the zero rate for one year

Following information about an existing bond is available:

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Problem about revenue recognition

Our sources of revenues include: (1) software, which includes new software license revenues earned from granting licenses to use our software products and fees from cloud software subscription offerings, and software license updates and product su..

  How are the efficiency and equity effects

Consider two metropolitan areas, one that has many small school districts and one that has only a few large school districts. - How are the efficiency and equity effects of introducing a voucher system likely to differ across these two areas?

  What is the value of the option to abandon

A project can be abandoned at the end of 1 year; the proceeds would be $100,000. If the project continues, the present value (at t = 0) of the future proceeds.

  Prepare the journal entries to record all of the transaction

Fin:08 Written Assignment - Problem Fixed Assets. Prepare the journal entries to record all of the transactions and prepare the general journal entry to record the disposal of the machine under each of these three independent situations

  Investment securities-market problem

For the past 5 years, what has been the relationship between GDP growth and the firm's revenue growth? Compare percent change in GDP and percent change in revenues. You can find GDP data at the bureau of Economic Analysiswww.bea.gov Choose nominal..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd