On a 3 year fixed payment loan, the fixed payment equals $3,900 a year. If the interest rate on the loan is 6%, how much is the loan.
Question 19 options:
$10,425 |
|
$12,999 |
|
$14,256 |
|
$11,700 |
What is the price of a consol bond that has annual coupon payments of $7500, a an interest rate of 5%,
Question 28 options:
$140,000 |
|
$150,000 |
|
$160000 |
|
$7142 |
What is the price of a 3 year coupon bond with a coupon payment of $150 and a face value of $3000? The average rate of interest is 3%.
Question 35 options:
$3169.72 |
|
$3639.85 |
|
$4500.36 |
|
$3659.79 |
19)
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On a 3 year fixed payment loan, the fixed payment equals $3,900 a year. If the interest rate on the loan is 6%, how much...
Which of the following instruments pays the holder of the instrument a fixed interest payment every year until maturity, and then pays the holder the face value (principle) of the instrument? at maturity O A. fixed-payment loan O B. simple loan O C. coupon bond O D. discount bond Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1130.00 and has a $1100 face value with a coupon...
Consider a long term government bond, specifically a "consol" that pays a fixed coupon payment C each period from now until ever. Let Qt be the price of the bond C and R the required gross rate of return on the bond, which we suppose equals the gross real interest rate. It follows that the bond must be priced to satisfy: where the left side of the equation is the expected rate of return from holding the bond. Questions 1....
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...
What is the weekly payment on a $100,000, 3 year loan with a fixed rate of 4% compounded quarterly?
If a loan has a 10-year amortization period with a fixed interest rate, will the interest paid in the eighth year be equal to the interest paid in the fifth year? With respect to when the balance will be paid off, does it matter when, in the term, a lump sum payment is made on the principal of a mortgage? Does skipping the 10th mortgage payment have the same consequence to lengthening the amortization period as skipping the 35th payment?
2 5. What is the rate of interest on a 1 year loan starting 3 years from now, implied by the following term structure: (i) A 1-year zero coupon bond has a yield to maturity of 1%, (ii) A 2-year zero coupon bond has a yield to maturity of 2%, (iii) A 3 year zero coupon bond has a yield to maturity of 3%, (iv) A 4-year zero coupon bond has a yield to maturity of 4% a. 1% b....
rate loan Solve the problem. Monthly Payment per $1000 of Mortgage Monthly payment Interest 15-year 20-year 25-year loan loan 9.5% $18.45 $9.33 $8.73 10. Bx L $10.95 $9.66 $9.09 10.5% $11.06 $9.99 $9.45 11.87. $11.37 $10.33 $9.81 11.5%. $11.69 $10.66 $10.16 1282 . $12.61 $11.01 $10.53 12.5% $12.33 $11.36 $10.90 13. $12.66 $11.72 $11.28 30-year loan $8.41 $8.78 $9.15 $9.53 $9.90 $10.29 $10.67 $11.06 Constance Hairston obtains a 25-year, $125,250 mortgage at 13% on a house selling for $150,000. Her...
Consider a 30-year fixed-rate home loan of $412,500 with an interest rate of 5.125%. What is the monthly payment? (Round your answer to the nearest cent.)
Consider a 30-year fixed-rate home loan of $412,500 with an interest rate of 5.125%. What is the monthly payment? (Round your answer to the nearest cent.)
80 The price of the consol is $ b. You are concerned that the interest rate may rise to 6 percent. Compute the percentage change in the price of the consol and the percentage change in the interest rate. Compare them. Instructions: Enter your response for dollar amounts rounded to the nearest penny (two decimal places ) and answers for percentages rounded to the nearest tenth (one decimal place). The new price of the consol would be $ 66.67 20...