How much we need to pay the bank in addition to the regular

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We have a $400,000, 30 year, 12% mortgage. We want to know

a. The monthly mortgage payment.

b. How much we need to pay the bank in addition to the regular payments in 20 years to pay off the mortgage.

c. If we pay $50,000 in 10 years, in addition to the regular payments, how many more months we need to keep paying to amortize the loan.

d. A bond sells for $1290, pays $60 annual interest and matures in 20 years. It has a callability feature giving the right to the firm to buy it back from the investor after 8 years at 108 par values. 

Find the YTM and the YTC of the bond. Which of the 2 will the investor make? Why?

Reference no: EM13986416

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