How much is the loan worth to the lender

Assignment Help Finance Basics
Reference no: EM131127867

Consider a 30-year fixed-rate mortgage of $100,000 at a nominal rate of 9%. What is the duration of the loan? If interest rates increase to 9.5% immediately after the mortgage is made, how much is the loan worth to the lender?

Reference no: EM131127867

Questions Cloud

Determine whether all roots of the characteristic equation : (a) Find a suitable contour Γs in the s-plane that can be used to determine whether all roots of the characteristic equation have damping ratios greater than ζ1,
Calculate the secondary current : Find the transformer kVA rating.
The nyquist plot of a conditionally stable system : The Nyquist plot of a conditionally stable system is shown in Figure P9.4 for a specific gain K. (a) Determine whether the system is stable, and find the number of roots (if any) in the right-hand s-plane.
Designing and delivering oral and online presentations : Speeches and oral presentations are much like any other messages in that a. they require similar planning. b. the size of the groups to which they are delivered is similar. c. the interaction between the audience and speaker is similar.d. they deal w..
How much is the loan worth to the lender : Consider a 30-year fixed-rate mortgage of $100,000 at a nominal rate of 9%. What is the duration of the loan? If interest rates increase to 9.5% immediately after the mortgage is made, how much is the loan worth to the lender?
Formula for compound form between sodium and polyatomic ion : What would be the most likely formula for the compound formed between sodium and the polyatomic ion X?
How much power is delivered to the load : If the primary current is 2.5 A rms, how much power is delivered to the load?
How much has the value of the mortgage fallen : Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. An S&L issues this mortgage on April 1 and retains the mortgage in its portfolio. However, by April 2 mortgage rates have increased to a 9.5% nominal rate. By how much has t..
An innovative mechanical arm : A direct-drive arm is an innovative mechanical arm in which no reducers are used between motors and their loads. Because the motor rotors are directly coupled to the loads, the drive systems have no backlash, small friction, and high mechanical st..

Reviews

Write a Review

Finance Basics Questions & Answers

  Amount of yen

In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars?

  Rejection of the null hypothesis

An experimenter wants to conduct a hypothesis test on a claim that there was no difference between two population means. That is, H0: μ1 - μ2 = 0. Which of the following 95% confidence intervals on the difference, μ1 - μ2, would lead to rejection ..

  At what price will it be filled

Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled?

  Determination of company sustainable growth rate

The Steiben Company has a ROE of 8.5% and a payout ratio of 35%. Determine the company's sustainable growth rate.

  Computation of current ratio and working capital

Computation of Current ratio, Working capital, Acid-test ratio, Receivables turnover and Inventory turnover - Compute the Current ratio and Working capital liquidity measures for 2002

  What will be difference in required returns for hri and lri

After all of these changes, what will be the difference in the required returns for HRI and LRI? Round your answer to two decimal places.

  Would you be willing to pay more or less for a stock on

would you be willing to pay more or less for a stock on average when the accounting information provided to you about

  Produce a schedule of the cash flows

Assuming a straight-line depreciation, a tax rate of 31%, and a cost of capital of 12%, is the project worth doing? Produce a schedule of the cash flows through the 5-year term of the project.

  Foreign currency transaction loss

On Sept 22, Year 4, Yumi Corp, purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency.

  Npv method-payback method-irr method

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method.

  The individual project will consist of you picking a

the individual project will consist of you picking a country of your choice. the project will be due the last week of

  Describe the financial environment at genesis

Describe the financial environment at Genesis

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