Mortgage typically have lower interest rate than car loan

Assignment Help Financial Management
Reference no: EM131616133

Why does a mortgage typically have a lower interest rate than a car loan? (Can you try to explain this in detail and simple since I don't know how to interpret this question)

Reference no: EM131616133

Questions Cloud

Planning project that will both expand the firm operations : A firm is planning a project that will both expand the firm’s operations and replace some of the older, less efficient assets of the firm.
What is the portfolio jensen alpha : The market return is 13.4 percent and the risk-free rate is 2.8 percent. What is the portfolio's Jensen's alpha?
Standard deviation of return on investment : The standard deviation of return on investment A is .25, while the standard deviation of return on investment B is .20.
Compute the present value of these four dividends : compute the present value of these four dividends. what is the expected value of the stock four years from now (P4)?
Mortgage typically have lower interest rate than car loan : Why does a mortgage typically have a lower interest rate than a car loan?
Government interference in free markets : What potential problems come with this government interference in free markets?
Use the time-value-of-money principles : Use the time-value-of-money principles to evaluate a personal capital investment such as going to graduate school, funding a retirement account,
Expected market return given expected return on security : According to the CAPM, what is the expected market return given an expected return on a security of 17.0%,
Major change in its investment policy and as consequence : Is this statement True or False Suppose that a company has a major change in its investment policy and as a consequence,

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the equivalent annual cost of a new jet

Calculate the equivalent annual cost of a new jet. Calculate the present value of the savings.

  Compute the aftertax cost of preferred stock

The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 1 percent less than that for preferred stock. Compute ..

  Calculate book value per share common stock

Calculate book value per share common stock

  Indirect effects on project cash flow

Indirect Effects on Project Cash Flow,  Provide an example of an Opportunity Cost that would arise in your firm when considering a new project.

  What are the sharpe and treynor ratios for the fund

Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. Year Fund Market Risk-Free 2008 –15.20 % –30.5 % 3 % 2009 25.1 20.1 4 20..

  What is the expected return on the portfolio

What is the expected return on the portfolio? What should be Greta’s capital allocation for the risk free asset, hedgefund, and S&P?

  Net salvage value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $16 million, of which 85% has been depreciated. The used equipment can be sold today for $5.6 million, and its tax rate is 35%. What is the equipment'..

  Purchase a one-month put option with a strike price

The market price of ZYX stock has been volatile and you expect that volatility to continue for a few weeks based on recent news. Due to this belief you decide to purchase calls and puts to manage your exposure. You also purchase a one-month put optio..

  Short-term way to hold cash until it is needed

The following is short-term way to hold cash until it is needed: US Treasury Notes of 10 year duration. The following is short-term way to hold cash until it is needed: Money market funds. The following is short-term way to hold cash until it is need..

  Money will be in the account at the end of that time period

For the next 12 years, you decide to place $3661 in equal year-end deposits into a savings account earning 6.72 percent per year. How much money will be in the account at the end of that time period?

  What would the cost of equity be if the debt-equity ratio

What is the company’s cost of equity capital? What would the cost of equity be if the debt-equity ratio were 2?

  Should it purchase or sell interest rate futures contracts

Assume a financial institution has more rate-sensitive assets than rate-sensitive liabilities. - Should it purchase or sell interest rate futures contracts in order to hedge its exposure?

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