In at least 4 -5 sentences, please distinguish between the initial rate of interest and the expected yield on an ARM. What is the general relationship between the two? How do they generally reflect ARM terms?
The initial rate if interest on an Adjustable Rate Mortgage (ARM) is the rate of interest that is applicable on the loan at its start. However, over time due to market conditions and the conditions of the overall economy, the interest rates change and there would be different interest rates at different period of times. Because of this the expected yield on the ARM will change during the course of the mortgage. The costs of each category of the loan will be added to the initial interest rate which will result in the expected yield.
In at least 4 -5 sentences, please distinguish between the initial rate of interest and the...
A basic ARM is made for $500, 000 at an initial interest rate of 3% with 2 discount points for 10 years. Payments are to be reset each year. The borrower believes that the interest rate at the beginning of year 2 will increase to 9 percent. Assuming that fulling amortizing is made and negative amortization is allowed if payment cap reached. If the ARM loan has a maximum 5% annual increase payment cap, what is the expected yield to...
What is the difference between a histogram and bar chart? (Explain in at least 4 sentences) What is the difference between a pie chart (circle) and a bar graph? When should you use a pie chart instead of a bar chart? (Answer in at least 5 sentences)
2. An ARM is made for $50,000 for 30 years with the following terms Initial interest rate 1 percent Paymen Interest rate cap -none Discount points point Negative amortization is not allowed Index 1-year Treasuries Margin 200 basis points ts reset each year Payment cap-none Based on estimated forward rates, the 1-year Treasury yields to which the ARM is tied is forecasted as follows: Beginning of year (BOY) 2-one percent (1%); (BOY) 3-two percent (2%); (BOY) 4-35%; (BOY) 5-5% Compute...
Define values. Distinguish between instrumental values and terminal values. Are these values generally stable, or do they change over time? Explain. What is the relationship between values and ethics? How does this compare or relate to your experience?
Question 5 please my teachers please Question 5. Distinguish between primary, secondary and effective porosity (6 marks) Question 6. Explain the following key terms in a percolation process: Conductivity flow and Diffusivity flow (4 marks) miany
4) Explain the relationship between total, marginal, and average product. 5) Distinguish between fixed, variable and total costs. 6) Explain the difference between average and marginal costs.
Q1: What is the difference between contribution margin and gross margin (two sentences maximum)? Chapter 4 is about accumulating cost using a job order costing system. Q2: How do you distinguish actual costing from normal costing under a job under a costing system? (3 sentences maximum.) Include references to credit any text, video, or other materials that you used as sources (including your textbook).
1. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds? 2. What are some factors to consider in evaluating a company's ability to make payments on outstanding debt? Please explain the factors rather than just providing a list. DB POSTING REMINDERS: • Please remember the initial post should be written as early in the week as possible, and the peer responses...
Please help with these questions, thanks 1) Distinguish between explicit and implicit costs, and between normal and economic profits. 2) Explain why normal profit is an economic cost, but economic profit is not. 3) Explain the law of diminishing returns. 4) Explain the relationship between total, marginal, and average product. 5) Distinguish between fixed, variable and total costs. 6) Explain the difference between average and marginal costs.
Question 6 please my teachers please Question 5. Distinguish between primary, secondary and effective porosity (6 marks) Question 6. Explain the following key terms in a percolation process: Conductivity flow and Diffusivity flow (4 marks) miany