Loan schedules - fixed vs floating, Financial Management

Assignment Help:

Consider a mortgage example to nance the purchase of a house or flat. You may use a real example or create a ctitious one. Search for di erent types of mortgages currently on o er by banks or building companies. Pick one xed rate and one floating rate mortgage as examples for detailed study.

Explain the di erences and similarities of the two mortgage types. Set up and compare the repayment schedules for both mortgages over the same time horizon. Make use of the mathematical notation and di erent compound interest functions introduced in the lectures. Try to include di erent scenarios for a time-dependent interest rate (piecewise constant in time or using stochastic simulation). Discuss advantages and disadvantages, similarities and di erences of both repayment schedules. You may use MATLAB, Excel or other computing tools. Please do explain how you get the results by writing the formulas which you are using and use gures or tables to show results, but do not include code listings or raw spreadsheets.


Related Discussions:- Loan schedules - fixed vs floating

Explain the term- maturities, Explain the term- Maturities Debentures a...

Explain the term- Maturities Debentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued.  Money Market Securities matu

State the impact on profitability of the company, State the impact on profi...

State the impact on profitability of the company Everything you do has an impact on profitability of the company(including drinking ten cups of coffee in a day!). So if you wan

Operating cycle, #questionoperating cycle in vegetable growing business in ...

#questionoperating cycle in vegetable growing business in uganda..

Convexity, Duration is good measure while estimating the percentage p...

Duration is good measure while estimating the percentage price change for a small change in interest rates but the estimation becomes inferior with the larger cha

Dow jones global index (djgi), Dow Jones Global Index (DJGI) The DJGI a...

Dow Jones Global Index (DJGI) The DJGI aims to cover 95% of market capitalisation at country level. As with FTSE and MSCI, there are the same 23 developed markets, but with gre

Operating cycle., operating cycle in vegetable growing business in uganda.....

operating cycle in vegetable growing business in uganda..

Define weight refer to in weighted average cost of capital, What does the “...

What does the “weight” refer to in the weighted average cost of capital? The weight considered to in weighted average cost of capital consider the portion of the total capital in

Call provisions, The issuer's right to call back the issue before the...

The issuer's right to call back the issue before the maturity date is referred to as a "call provision". In case of asset-backed securities, the trustee is grante

Federal reserve system, Federal Reserve System The central banking inst...

Federal Reserve System The central banking institution in the United States responsible for determining United States monetary strategy, including the setting of interest rates

Explain the adjusting journal entry, Q. Explain the Adjusting Journal Entry...

Q. Explain the Adjusting Journal Entry? Adjusting Journal Entry - An accounting entry made into a subsidiary ledger known as the Generaljournal to account for a periods changes

Write Your Message!

Captcha
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