Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. There are no caps. The index was 1% at the time of origination. Tim also had to pay 1 point for this loan.
Suppose the index rate will remain 1% for the life of the loan. Compute the annualized IRR for this loan assuming Tim will prepay in 5 years.
2. Tom got a 30 year fully amortizing FRM for $500,000 at 8%, with constant monthly payments. After 3 years of payments rates fall and he can get a 27 year FRM at 5%, but he must pay 2 points and $1000 in closing costs to get the new loan. Think of the refinancing decision as an investment for Tom, he pays a fee now but saves money in the future in the form of lower payments. What is the annualized IRR of refinancing for Tom assuming he prepays the new loan 5 years after refinancing?
(Clarification: Tom will prepay the new loan 3+5=8 years after the house is purchased)
Calculate Macaulay duration for the bond.
You are to prepare a research report on the stock, STE - Steris Corp. - Medical Appliances & Equipment. What I am looking for is not a download of past history, not a copy of text taken from a 10-K.
Suppose your company needs to raise $51 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 6 percent, and you’re evaluating two issue alternatives: A semiannual coupon bond with a coupo..
What is the price of a 9-month call option AND a 9-month put option BOTH with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information? Stock Price = $48 Strike Price = $45 Time to expiration = .75 Risk-free ra..
Discuss how SSC's stockholders might view each of these actions and how the actions might affect the stock price.
using each of the following current market interest rates as the discount rate:
In finance, an efficient market is one in which
How large of a sales increase can the company achieve without having to raise funds externally?
Fresh Water, Inc. sold an issue of 20-year $1,000 par value bonds to the public. What is the current market price of the bonds?
A farmer had a barn that was burned in a fire and had been built two years prior to the fire. the useful life of the barn was 35 years, cost was $35,000, and salvage value is $0. if the insurance company is going to pay for the present value of the b..
Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? what is the expected capital gains yield
What is a burden rate? What is a direct rate? What are the most common burden rates?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd