What is the value of assuming this mortgage

Assignment Help Financial Management
Reference no: EM13726413

Suppose we are assuming a $5 million 20-year mortgage with 8 years remaining at a rate of 4%. If we could obtain a new 8-year mortgage for 5%, what is the value of assuming this mortgage?

a. Assuming annual payments

b. Assuming monthly payments

Reference no: EM13726413

Questions Cloud

Describe important uncontrollable environmental variables : Consider an international firm you are familiar with and what the firm needs to be concerned with when entering a foreign market. what do you consider to be the 3 most important "uncontrollable environmental variables" that must be understood in or..
File compression : Research the Internet or create your own files which meet the following criteria: a) gzip compresses by more than 80 percent b) gzip compresses by less than 10 percent
Diversity in the workplace and work-life balance : Research the Internet or the Strayer Library for articles on issues of work / life balance in other countries (particularly European countries). Diversity in the Workplace and Work-Life Balance
Differences between total exports versus total imports : Compare the fundamental differences between total exports versus total imports
What is the value of assuming this mortgage : Suppose we are assuming a $5 million 20-year mortgage with 8 years remaining at a rate of 4%. If we could obtain a new 8-year mortgage for 5%, what is the value of assuming this mortgage?
Discuss three aspects of us history : Discuss three aspects of US history since 1865 that have led to the USA's rise as a world super power policeman. Identify three to five international incidents since World War II where America has taken on a policing role.
Using the types of entities found in the henry : Using the types of entities found in the Henry Books database (books, authors, and publishers), create an example of a table that is in first normal form but not in second normal form and an example of a table that is in second normal form but ..
Write about income inequality in the u.s. : Read the articles provided on moodle and write about income inequality in the U.S. One of the best ways of doing this is to start summarizing the articles.
Calculate the finance charge and monthly payment : Zachary Porter of Highland Heights, Kentucky, is contemplating borrowing $10,000 from his bank. The bank could use add-on rates of 6.5 percent for 3 years, 7 percent for 4 years, and 8 percent for 5 years. Use Equation 7.1 to calculate the finance ch..

Reviews

Write a Review

Financial Management Questions & Answers

  Forecasting interest rates based on prevailing conditions

Forecasting Interest Rates Based on Prevailing Conditions - discuss the impact of each of the factors on your opinion. Offer some logic or current reference(s) to support your answer. Which factor do you think will have the biggest impact on intere..

  Review the financial statements of merck and novartis

Review the financial statements of Merck and Novartis to learn additional information. The emphasis of this Case is to review the income statement, balance sheet and computation of ratios.

  Maturity quoted at discount yield

What is the price of a U.S. Treasury bill with 56 days to maturity quoted at a discount yield of 1.20 percent? Assume a $1 million face value. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Question 1an investor could like to buy a futures contract

question 1an investor could like to buy a futures contract on the alcoa share. todays price of the alcoa share is 17.

  Understanding supply chain and how the consumer can play a

understanding supply chain and how the consumer can play a critical role in the supply chain is an important part of

  Case studykoda private limited koda a privately owned

case studykoda private limited koda a privately owned company has been manufacturing electrical parts used in mobility

  Where technical assets are being so easily replicated

Now are businesses competing with each other in this age where every company uses IT to automate its business processes to sustain in the market and where technical assets are being so easily replicated?

  Calculate payback period and internal rate of return (irr)

Company has an opportunity to make an investment with the estimated after tax cash flows

  Values for a lump sum assuming annual compounding

Find the following values for a lump sum assuming annual compounding: The future value of $500 invested at 8 percent for one year The future value of $500 invested at 8 percent for five years The present value of $500 to be received in one year when ..

  What do you mean by financial index and commodity

what do you mean by financial index and commodity index?method of index uses in calculation?weighted average method?how

  What is the future value-compounded semi-annually

What is the future value of $2,600 in 19 years assuming an interest rate of 7.9 percent compounded semi-annually? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Significant advantage of the internal rate of return

All the following variables are used in computing the cost of debt EXCEPT. A significant advantage of the internal rate of return is that it

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