User Account

All Pages

What is initial monthly payment in each of respective loans

Assignment Help Financial Management
Reference no: EM132024324

Property appraisal is $2.8 an you believe you can borrow the funds based on an 80% LTV ratio.

Interest rate - 30 year fixed: 4.625%, 2 points required to close the loan.

Interest rate - 15 year fixed: 4.0%

Note: Fully amortized, monthly payments

Answer the following questions, show your calculations:

What is the initial monthly payment in each of the respective loans?

Compare the amount of interest which would be paid on the 30 year vs. the 15 year loan.

Which loan would you choose assuming there is 80% loan to value on the property? Explain.

What would the yield to the lender be on the 30 year fixed loan, considering the 2 points which must be paid?

What would the outstanding balance of the 15 year fixed loan be after 5 years?

Reference no: EM132024324

Questions Cloud

Describe the company you will be using for your project : Describe the company you will be using for your project, and provide the name and contact information for the human resource director or other manager.
What is the break-even exchange rate : What is the break-even exchange rate? What is the maximum amount they could realize if the exchange rate moves against them?
What is the annual deposit required : What is the annual deposit required, if interest rate is 10%?
Assuming that pricing is by no-arbitrage model : How much should Cherie expect to pay for the desired option, assuming that pricing is by a no-arbitrage model?
What is initial monthly payment in each of respective loans : What is the initial monthly payment in each of the respective loans? What would the outstanding balance of the 15 year fixed loan be after 5 years?
What is expected current share price : what is General Industries' expected current share price?
The primary driver of the company stock valuation : With that assumption, the level of free cash and the speed of the growth of the free cash flow is the primary driver of the company's stock valuation.
Describe the process and role of venture capital : Describe the process and role of venture capital.
Actual economic rate of return based on fisher effect : If the expected inflation rate for the next year is 1.4%, what is the expected actual economic rate of return based on the Fisher effect?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the flotation cost adjustment

Barton industries expects next year's annual dividend to be $1.50 and it expects dividends to grow at a constant rate of 4.2 The firm's current common stock price is $20.30 If it needs to issue new common stock the firm will encounter a 5.3 flotation..

  What is the standard deviation of the stock returns

What is the standard deviation of the stock's returns for the five-year period?

  What is the percentage change in the price of these bonds

Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has four years to maturity, whereas the Hardy Corp. bond has 15 years to maturity...

  What are the yields to maturity for bond

Consider three risk free Eurobonds (which pay coupons annually). Their times to maturity, coupon rates and current market prices (based on a face value of$100) are as follows: Bond A 1 yr 9% $101.25; Bond B 2 yrs 8% 99.75; Bond C 3 yrs 7% $96.00.

  Financial analysts estimate of wccs stock price

WCC has EBITDA of $4.2 million. A financial analyst feels that an appropriate EV/EBITDA ratio for WCC is 8.4. WCC has $4.5 million in debt, $1.2 million in cash and 640,000 shares outstanding. What is the financial analyst’s estimate of WCC’s stock p..

  What will the account balance be after four ?years

If Bob and Judy combine their savings of ?$1,000 and ?$700?, ?respectively, and deposit this amount into an account that pays 2% annual? interest, compounded? monthly, what will the account balance be after 4 ?years?

  What is the value of a bond

What is the value of a bond that has a par value of $1,000, a coupon of $80 (annually), and matures in 11 years? Assume a required rate of return of 11%, and round your answer to the nearest $10.

  Complete the using compound future value

Complete the following using compound future value. Round answers to nearest cent. time 12 years principal $15,000 rate 3 1/2% compounded annually what is teh amount? and interest?

  What will you have at the end of the invest horizon

what will you have at the end of the invest horizon if the opportunity rate for your investments is 6%?

  Evaluate the return on your stock-trak portfolio

Use Sharpe, Treynor, or Jensen’s measures to evaluate the return on your Stock-Trak portfolio. Why did you use that particular measure? Given your returns, what do you plan to do differently with your portfolio next week? How do your returns compare ..

  Explain what is meant by bootstrapping

Explain what is meant by bootstrapping when raising seed financing and why bootstrapping is important. Describe the role of venture capitalists in the economy and discuss how they reduce their risk when investing in start-up businesses.

  The current rate be on two year treasury securities

If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd