How much is the loan worth to the lender

Assignment Help Finance Basics
Reference no: EM131127867

Consider a 30-year fixed-rate mortgage of $100,000 at a nominal rate of 9%. What is the duration of the loan? If interest rates increase to 9.5% immediately after the mortgage is made, how much is the loan worth to the lender?

Reference no: EM131127867

Questions Cloud

Determine whether all roots of the characteristic equation : (a) Find a suitable contour Γs in the s-plane that can be used to determine whether all roots of the characteristic equation have damping ratios greater than ζ1,
Calculate the secondary current : Find the transformer kVA rating.
The nyquist plot of a conditionally stable system : The Nyquist plot of a conditionally stable system is shown in Figure P9.4 for a specific gain K. (a) Determine whether the system is stable, and find the number of roots (if any) in the right-hand s-plane.
Designing and delivering oral and online presentations : Speeches and oral presentations are much like any other messages in that a. they require similar planning. b. the size of the groups to which they are delivered is similar. c. the interaction between the audience and speaker is similar.d. they deal w..
How much is the loan worth to the lender : Consider a 30-year fixed-rate mortgage of $100,000 at a nominal rate of 9%. What is the duration of the loan? If interest rates increase to 9.5% immediately after the mortgage is made, how much is the loan worth to the lender?
Formula for compound form between sodium and polyatomic ion : What would be the most likely formula for the compound formed between sodium and the polyatomic ion X?
How much power is delivered to the load : If the primary current is 2.5 A rms, how much power is delivered to the load?
How much has the value of the mortgage fallen : Consider a 30-year fixed-rate mortgage for $100,000 at a nominal rate of 9%. An S&L issues this mortgage on April 1 and retains the mortgage in its portfolio. However, by April 2 mortgage rates have increased to a 9.5% nominal rate. By how much has t..
An innovative mechanical arm : A direct-drive arm is an innovative mechanical arm in which no reducers are used between motors and their loads. Because the motor rotors are directly coupled to the loads, the drive systems have no backlash, small friction, and high mechanical st..

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a journal entry to correct the error

Wilkins Food Products, Corporation acquired a packaging equipment from Lawrence Specialists Corporation. Lawrence completed construction of the equipment on January 1, 2004.

  What is the difference between operating and financial

1. what is investment banking? how would an investment banker assist an organization in going public? as a chief

  Should a financial plan be considered an unbiased forecast

should a financial plan be considered an unbiased forecast of future cash flows earnings and other financial

  Determine which stock has more unique risk

The total risk is composed of the unique risk and the market risk. The total risk is usually measured as the standard deviation whereas the market risk is measured as the beta associated with the market portfolio.

  What is the current market value of one of these bonds

Suppose the bond were to mature in 12 years. What will be the bond's price if rates in the market (i) decrease to 8.79 percent or (ii) increase to 12.79 percent.

  Consider the geometric process s and calculate dst

Calculate dSt.(b) What is the "expected rate of change" of St?(c) If the exponential term in the definition of St, did not contain the 1/2σ2t term, what would be the dSt? What would then be the expected change inSt?

  Calculate the current price of the stock

The expected growth rate is 7 percent, and the required rate of return is 9.5 precent based on the cost of capital. Calculate the current price of the stock. Do not use a financial calculator or an online calculator. You must show your work.

  What is the relationship between conversion value

What is the relationship between conversion value, bond value, and market value for a convertible security?

  What was the average nominal risk premium on the stock

The average inflation rate over this period was 3.25 percent and the average T-bill rate over the period was 4.3 percent.

  Determine the annual financing cost to titusville

The interest costs and the service fee are payable at the end of the borrowing period. Titusville has $2 million in receivables that can be pledged as collateral. The average collection period is 45 days. Determine the annual financing cost to Titusv..

  How large must each of the 2 payments be

One year from today you must make a payment of $13,000. To prepare for this payment, you plan to make 2 equal quarterly deposits, at the end of Quarters 1 and 2, in a bank that pays 7% nominal interest, compounded quarterly. How large must each of..

  What your estimate of golden clothiers levered equity beta

If Golden has no preferred stock outstanding, their debt-to-equity ratio of 85% is expected to remain constant going forward, and their marginal tax rate is 40%, what is their weighted average cost of capital?

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