Lender wanted to adapt the loan

Assignment Help Financial Management
Reference no: EM13942912

If the lender wanted to adapt the $200,000 loan at 8% with monthly payments and a 30 year term that it yielded 8.75%, how many points would be necessary?

Reference no: EM13942912

Questions Cloud

What is the firms expected rate of return : ABC Inc.'s stock has a 50% chance of producing a 21% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -30% return. What is the firm's expected rate of return? 1. 9.72% 2. 9.88% 3. 7.82% 4. 7.50% 5. 8.37%
Which loan should she sign up for : Susan wants to buy a house for $200,000. US Bank will give her the loan at 3.5% for 30 years if she puts 20% down and Dacotah Bank will give her the loan at 3.8% for 30 years if she puts 10% down. There are NO other options. which loan should she sig..
Discuss systematic and unsystematic risk : Discuss systematic and unsystematic risk, which can be diversified and why? Also discuss some measures of systematic risk and how they can be used to maximize returns and minimize risk.
The yield to maturity remains at its current rate : A 20-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $950. If the yield to maturity remains at its current rate, what will the price be 10 years from now? $950.00 $946.22 $964.80 $863.84 $1,000
Lender wanted to adapt the loan : If the lender wanted to adapt the $200,000 loan at 8% with monthly payments and a 30 year term that it yielded 8.75%, how many points would be necessary?
What is the net present value of the proposed switch : Under your current cash sales only policy you sell 110 units a month for a total sales value of $7,590. Your variable cost per unit is $38 and your monthly interest rate is 1.7 percent. Based on a recent survey, you believe that you can sell an addit..
What is maximum price you should be willing to pay for bond : You are considering the purchase of a 20-year, noncallable bond with a coupon rate of 8.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 12% nominal yield to maturity on this investment, what is th..
A company has two bonds outstanding : A company has two bonds outstanding. The first matures after five years and it has a coupon rate of 3%. The second matures after ten years and it has a coupon rate of 5%. Interest rates are currently 7%. What is the present value of each $1,000 bond?..
Effective yield to the lender assuming six points : Calculate for a loan of $1,000,000 at 5% with monthly payments and a 30 yearterm, the effective yield to the lender assuming 6 points were paid under the following scenarios:

Reviews

Write a Review

Financial Management Questions & Answers

  What rate of inflation is expected in year three and beyond

Economists expect the inflation rate to be 1.5 percent for the coming year and the following year, and then after Year 2 inflation will settle at a constant rate greater than 1.5 percent. The yield is the same on one-year bonds and two-year bonds; th..

  Determine the annual financing cost of the loan

Determine the annual financing cost of the loan under each of the following conditions Kittanning currently maintains $100,000 in its account at the bank that can be used to meet the compensating balance requirement.

  Distinguish between an open-end fund and a closed-end fund

Distinguish between an open-end fund and a closed-end fund.

  Mutually exclusive projects and contingent projects

Raider Productions has to decide whether to build its warehouse in Dallas or Houston. This decision falls into the class of a. independent projects. b. mutually exclusive projects. c. contingent projects. d. marginal projects.

  What is the probability that an investor in this stock

Over the past five years, a stock produced returns of 14%, 22%, -16%, 2%, and 10%. What is the probability that an investor in this stock will NOT lose more than 8% nor earn more than 21% in any one given year?

  What is the projects net present value

A project is expected to create operating cash flows of $32,000 a year for three years. The initial cost of the fixed assets is $66,000. These assets will be worthless at the end of the project. An additional $3,500 of net working capital will be req..

  What is the combined interest cost of financing package

A borrower is considering the following loan package for a $400,000 home purchase: What is the combined interest cost (effective cost) of this financing package?

  Exact expected real risk premiums on the portfolio

If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? What is the standard deviation? What are the approximate and exact expected real risk premiums on the portfolio?

  What is the firms cost of equity

Tina Fashions is expected to pay an annual dividend of $1.10 a share next year. The market price of the stock is $21.80 and the growth rate is 4.5 percent. What is the firm's cost of equity?

  What must the risk-free rate be

A stock has an expected return of 11.5 percent, its beta is 1.65, and the expected return on the market is 9.2 percent. What must the risk-free rate be?

  Firms dividend policy impacts firm ability to finance

Firm's dividend policy impacts firm ability to finance through:

  Hired build-right construction to build bridge

State X hired Build-Right Construction to build a bridge. State X required that construction be completed within 2 years after the contract was signed. Les Johnson is the president of Build-Right. State X required that Build-Right's promise to perfor..

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