1) Following are the features of a mortgage loan: Loan amount $100,000 Nominal interest rate 6.2%...
1) Following are the features of a mortgage loan:
Loan amount $100,000
Nominal interest rate 6.2%
Term – 30 years (Fixed)
Required:
(a) Calculate the required monthly mortgage payment.
(b) Calculate the amount of interest and the repayment of principal amount for the first month.
2) Consider the two bonds as given below:
- Bond X has 12 years to maturity, a coupon rate of 8% with a part value of $1,000, and the yield-to-maturity of 6%. Calculate the price of the bond.
- Bond Y has 18 years to maturity, it is a zero-coupon bond with a part value of $1,000. If this bond yields to 8 %, what would the price of this bond be?
Homework Answers
![Amount of mortgage- $100,000 a·Monthly payment-PMT- Loan ÷ [(1-(1/(1+rAn)))/r] 100,000+ [((1-(1/(1.005167A360))/0.005167] $612.47 b) interest portion of first payment $516.67 [ 100,000 x 6.2%/12] b) Principal portion of first paymenŞ95.80 [ 612.47-516.67]](http://img.homeworklib.com/questions/a5cdffa0-6e74-11ea-b7df-e716209c7c58.png?x-oss-process=image/resize,w_560)
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1) Following are the features of a mortgage
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