User Account

All Pages

Find what price should receive for the loan

Assignment Help Accounting Basics
Reference no: EM132619946

A bank has made a three-year $10 million dollar loan that pays annual interest of 8 percent. The principal is due at the end of the third year.

Question a. The bank is willing to sell this loan with recourse at an interest rate 8.5 percent? What price should it receive for this loan?

Question b. The bank has the option to sell this loan without recourse at a discount rate of 8.75 percent. What price should it receive for this loan?

Reference no: EM132619946

Questions Cloud

Describe what is needed on the company network : Describe a solution to securely connect a remote worker from their home and connected to the Internet to their company network. How does this solution work.
When the shoes are at the hong kong loading docks : Who owns the freight when the shoes are at the Hong Kong loading docks, ready to be shipped to New York? The shipping company
Assessment of the work processes : Describe the results of your assessment of the work processes and key employees to be addressed in your final paper.
Unit 19 Electrical and Electronic Principles Assignment : Unit 19 Electrical and Electronic Principles Assignment Help and Solution - Higher National Certificate in Electrical and Electronics Engineering Assessment
Find what price should receive for the loan : Find What price should it receive for this loan? The bank has the option to sell this loan without recourse at a discount rate of 8.75 percent.
What are some examples of investing activities : What are some examples of investing activities? What are some examples of financing activities? Explain what is the meant for investing activities
Legal factors impact international trade : How do political and legal factors impact international trade?
Describe the direct write-off method : Why methods is preferable to the other and the reasons why the other method is not usually in accordance with generally accepted accounting principles
About the company financial health and performance : Using what you know about the company's financial health and performance, forecast its future performance. In particular, you should:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd