Compute the futures price for one ounce one year contract

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Reference no: EM131983025

1. Yield maintenance - the loan was originated with a 7.5% rate, on $350,000 loan, 30-year amortization with a ten-year term. With 2.5 years remaining on the term the borrower wants to prepay the loan with a current interest rate for 2.5 years of 3.75%, what is the prepayment fee?

2. The current price of silver is $16.50 per ounce. Storage costs are $1.50 per ounce per year. Storage costs are payable in two installments, half today and half in six months. The term structure is flat at 4%. Compute the futures price for a one ounce one year contract.

Reference no: EM131983025

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