What is the monthly mortgage payment during month

Assignment Help Financial Management
Reference no: EM131324696

Create the amortization spreadsheet and answer the following questions for a $350,000 15-year fixed-rate, constant-payment mortgage loan that is partiallyamortizing with a balloon payment of $100,000. The contract interest rate is 4% with monthly payments. Up-front discount points on the loan are 4%, and there is a 1% prepayment penalty.

please post spreadsheet with formulas visible

a) What is the APR (annual percentage rate) on the loan – assuming that there is no early prepayment on the mortgage?

b) What is the EAR (effective annual rate) on the loan if it prepaid at the end of year 7?

c) What is the monthly mortgage payment during month 160?

d) How much cumulative interest is paid during the 14th year of the mortgage?

Reference no: EM131324696

Questions Cloud

What will be the new degree of operating leverage : At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of..
What is the cost of equity from retained earnings : Amber Inc. hired you as a consultant to estimate its cost of equity. You've collected the following data: The stock price, P0, is $22.5 and the most recent dividend, D0, was $0.8. Dividends are expected to grow at a constant rate of g = 8%. what is t..
The risk premium for securities in market : Market A deals in low-risk securities with an average interest rate of 5%. Market B deals in high-risk securities with an average interest rate of 7%. Suddenly there is a financial crisis and the economy enters recession. Before the recession, the ri..
Bonds one year ago at coupon rate : App Store Co. issued 16-year bonds one year ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current bond price?
What is the monthly mortgage payment during month : Create the amortization spreadsheet and answer the following questions for a $350,000 15-year fixed-rate, constant-payment mortgage loan that is partiallyamortizing with a balloon payment of $100,000. What is the APR (annual percentage rate) on the l..
Show the compound interest overal growth rate : Mr. Richards needs more analysis to update his client presentations. He would like additional future value calculations. Using the same framework, calculate the future value pf the bank CD's that would pay 1% and 2% annual interest. Show the compound..
What did the video card cost : Gary is building a computer for a customer. Of the money he spent on parts, 20% went into buying the video card. If the rest of the computer cost $650, what did the video card cost?
Assume that risk-free rate of interest : Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 14%. A share of stock sells for $61 today. It will pay a dividend of $5 per share at the end of the year. Its beta is 1.5. What do investors expect the ..
What must be the beta of a portfolio : What must be the beta of a portfolio with E(rP) = 18%, if rf = 4% and E(rM) = 14%?

Reviews

Write a Review

 

Financial Management Questions & Answers

  What information is contained in a loan repayment schedule

What is simple interest? What information is needed to compute it? What information is contained in a loan repayment schedule?

  Stock portfolio-create a portfolio with an expected return

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 8 percent. If your goal is to create a portfolio with an expected return of 9.59 percent, how much ..

  What would you expect to happen to the value of the swap

As the default correlation between the reference entities increases what would you expect to happen to the value of the swap when (a) n = 1 and (b) n = 25.

  People may lack capacity to enter into contracts

People may lack capacity to enter into contracts. For instance, most contracts with minors are voidable. Other causes for lack of capacity are mental illness, drugged state, and drunkenness. Do you think all of these should be treated the same? Why o..

  Investment opportunity-What is the NPV of the project

Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.8 million in Year 1, €2.6 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is $1.36/€..

  The bond pays coupons semiannually

Current Yield with Semiannual Payments A bond that matures in 9 years sells for $950. The bond has a face value of $1,000 and a yield to maturity of 9.8764%. The bond pays coupons semiannually. What is the bond's current yield?

  Value of the call option embedded in the convertible bond

Conversion price $52/share Coupon rate 6.5% Par value $1,000 Yield on nonconvertible debentures of same quality 8.5% Maturity 25 years Market price of stock $42 /share 23. If the price of the convertible bond is $900, what is the value of the call op..

  Callable bond outstanding on the market

Fooling Company has a 14 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $100. What is the yield to call (YTC) for this bond if the current price is 104 percent o..

  Firm uses its excess cash to complete a stock repurchase

A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equity is worth $5,000. The firm has 500 shares of stock outstanding and net income of $720. What will the new earnings per sha..

  Calculate the individual costs and wacc

Calculate the individual costs and wacc. Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the follow..

  Calculate call value of owens corning warrants

When Owens Corning emerged from bankruptcy in 2006, the debt holders became the sole owners of the company. But the old stockholders were not left entirely empty handed. They were given warrants to buy the new common stock at any point in the next se..

  Determine the payback period for the project

Payback period Jordan Enterprises is considering a capital expenditure. Determine the payback period for this project. Should the company accept the project? Why or why not?

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