What is the real value of the payment

Assignment Help Financial Management

Reference no: EM131867839

A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 6% compounded monthly, with monthly payments. Suppose inflation is 5% per year, compounded monthly. What is the real value of the 120th payment?

Reference no: EM131867839

Questions Cloud

What is difference in maturity risk premiums on two notes : If 2-year and 5-year Treasury notes both yield 10%, what is the difference in the maturity risk premiums (MRPs) on the two notes;

Estimating share value using the dcf model : Estimating Share Value Using the DCF Model Following are forecasts of Whole Foods sales, net operating profit after tax (NOPAT),

Compute the cost of capital for the firm : Compute the cost of capital for the firm for the following:

Economic interpretation of the corporate cost of capital : What is meant by a firm’s debt capacity? What is the economic interpretation of the corporate cost of capital?

What is the real value of the payment : A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 6% compounded monthly, What is the real value of the 120th payment?

What is the fully indexed rate on the loan in one year : In one year after the loan is originated, the Libor is 7.20%. What is the fully indexed rate on the loan in one year?

Arrange trust for her descendant education : Having just sold a unicorn startup, a now-wealthy entrepreneur would like to arrange a trust for her descendant's education.

What is the difference between buying motives and benefits : What is the difference between buying motives and benefits?

What must coupon rate be on these bonds : The bonds make semiannual payments. What must the coupon rate be on these bonds?

User Account

All Pages