The outstanding mortgage balance at the lower rate

Assignment Help Financial Management
Reference no: EM132065256

1. Consider a 15-year, $135,000 mortgage with a rate of 5.75 percent. Four years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. A noncallable Treasury bond has a quoted yield of 4.78 percent. It has a 5.75 percent coupon and 13 years to maturity.

a. What is its dollar price assuming a $1,000 par value? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Dollar price $ 1092.40

b. What is its quoted price?

Quoted price :

Reference no: EM132065256

Questions Cloud

Calculate the net present value and the ROI : You will calculate the tangible and intangible costs and benefits of IS. Calculate the net present value (NPV) and the ROI.
What is the minimum value of bond : The conversion ratio on the bond is 15 and the stock is currently selling for $54 per share. What is the minimum value of this bond?
Operating leverage at accounting break-even point : What is the degree of operating leverage at the accounting break-even point.
Required by traditional business models : What new and changed roles and responsibilities are required of an eBusiness that is not required by traditional business models?
The outstanding mortgage balance at the lower rate : What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?
Evaluate the effectiveness of total quality management : Examine and evaluate the effectiveness and usability of Total Quality Management (TQM) in ambulatory care settings. Identify one (1) potential challenge facing.
Define healthcare facility preparedness plan : In preparation for your presentation, research and review at least one (1) healthcare facility's preparedness plan. Note: A video to help students record.
How to calculate the allowance for doubtful accounts : Explain how to calculate the allowance for doubtful accounts and the bad-debt expense in a hospital. A key aspect of the Patient Protection and Affordable Care.
Contrast features of exempt and non-exempt employee status : Compare and contrast the features of exempt and non-exempt employee status in a table format. Speculate how employers benefit from having one type or another.

Reviews

Write a Review

Financial Management Questions & Answers

  Move up or down and the longer is bond term

As interest rates move up or down and the longer is a bond's term. Determine the common stock for Bertinelli Corp. based on the following information:

  Assume constant stick price

You want to buy 20 shares per month for 20 years calculate how much money you need to do so. Assume a constant stick price.

  What is incremental cost of borrowing the additional funds

What is the incremental cost of borrowing the additional funds?- How would your answer change if two points were charged on the 90 percent loan?

  What was the addition to net working capital

what was the addition to net working capital or NWC?

  Correlation coefficient from diversification perspective

Discuss the implications of the correlation coefficient from a diversification perspective.

  Calculate is the fair market value of the stock now

Calculate is the Fair Market Value (FMV) of the stock now. Show a timeline of the cash flow.

  What is the stock expected return and variance

A stock had the following annual returns: 17%, 3%, -19%, and -17%. What is the stock's expected return, variance, and standard deviation?

  Shares of common stock outstanding

Titan Mining Corporation has 9 million shares of common stock outstanding, ½ million shares of preferred stock paying $7 dividends and 120,000 8.5% semiannual bonds outstanding , par value $1000 each. The market risk premium is 10%, T-bills are yield..

  What must risk-free rate be

A stock has an expected return of 13.4 percent and a beta of 1.15, and the expected return on the market is 12.4 percent. What must the risk-free rate be?

  What is the present value of your discovery

What is the present value of your discovery if you could receive a 5% return in an alternative investment?

  Investment companies are specialize financial intermediaries

Investment companies are specialized financial intermediaries that provide financial services to businesses. These investment companies include: (check all that apply)

  Calculate the cash flows for each year

Calculate the cash flows for each year (years 0 through 5), and the NPV of the project. Yearly revenues grow at 4% per year and yearly expenses grow at 3% per year, working capital is increased from 0 to $1,000 in year 0, working capital is 15% of re..

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