Recreate the bottom two sections of the spreadsheet

Assignment Help Financial Management

Reference no: EM131992301

For the spreadsheet below please use excel to replace the numbers in the cells from the Loan and Borrower Cost Information cell to the Incremental Cost of Funds cell, with equations that reference the top section (Incremental cost of funds cell to Mortgage interest rate cell).

To be clear, you must use equations to recreate the bottom two sections of the spreadsheet from the numbers in the first section of the spreadsheet.

Show these equations and make sure they equal the numbers provided in the bottom two sections.

Incremental Cost of Funds
Assumptions	Base Case
Loan Amortization Term	30	30	30
Prepayment Year	10	10	10
Property Value	$200,000	$200,000	$200,000
LTVR	80.00%	85.00%	90.00%
Points	0.00%	0.25%	0.50%
Incremental Closing Costs	0	750	1,500
UST₁₀	2.20%	2.20%	2.20%
Spread	1.70%	2.00%	2.30%
Mortgage Interest Rate	3.90%	4.20%	4.50%

Loan and Borrower Cost Information
Loan Amount	160,000	170,000	180,000
Points and Increment Costs	0	1,175	2,400
Funds Disbursed	160,000	168,825	177,600
Debt Service	755	831	912
Outstanding Loan Balance	125,627	134,831	144,161
Borrower Cost of Funds	3.90%	4.29%	4.68%

Incremental Cost of Funds (relative to base case)
Incremental New Funds		8,825	17,600
Incremental Debt Service		77	157
Incremental Outstanding Loan Balance		9,205	18,534
Incremental Cost of Funds		10.67%	11.02%

Reference no: EM131992301

Questions Cloud

Compare the amount of money the investor will have : Compare the amount of money the investor will have at the end of the year if he or she Invests in one-year US securities vs. one-year British securities.

What is the current bond price : The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.2 percent, what is the current bond price?

Calculate the eaa of machine a : Based on the firm's cost of capital of 12 percent, the NPV of Machine B is $2,579,277, wuth an equivalent annual annuity (EAA) of $849,187 per year.

Completion of four activities : A task requires the completion of four activities. A teacher would like to know if differences in the sequence of the four activities results in different task

Recreate the bottom two sections of the spreadsheet : To be clear, you must use equations to recreate the bottom two sections of the spreadsheet from the numbers in the first section of the spreadsheet.

How the low response rate could bias the results : a. Consider how the low response rate could bias the results of this study.

Difference in the mean production rate by shift : At the 0.01 significance level, can we conclude there is a difference in the mean production rate by shift or by employee?

Importance of human factor to air safety : 42908 Engineering Project Preparation - The importance of human factor to air safety - proposal of work to be done and so you might also say something

Outline the design of study in schematic form : The other three cities served as controls. Outline the design of this study in schematic form.

User Account

All Pages