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

  Integrated risk management programs

Integrated risk management programs are new to many risk managers and the insurance companies that offer such programs.

  Decimal digits rather than as a percentage

Calculate BSX's ROA for 20X1 [express the ROA as 3 decimal digits rather than as a percentage, so 0.123 not 12.3%. Don't round so both 0.1236 and 0.1234 should be 0.123] ROA:

  Kavita de falla is an individual with low risk tolerance

kavita de falla is an individual with low risk tolerance who has just inherited 100000. she has no immediate needs for

  What must the risk-free rate be

A stock has an expected return of 13.3 percent, its beta is 1.45, and the expected return on the market is 10.5 percent. What must the risk-free rate be?

  Accounts are paid on average 60 days after sale sales per

average investment in accounts receivable. the cost of product x is 30 percent of its selling price and the carrying

  What is the weighted average cost of capital at the optimal

what is the firm's optimal capital structure, and what is the weighted average cost of capital at the optimal structure?

  Simply restrict all goods coming

Why doesn't the U.S. simply restrict all goods coming in from China? Why can't the U.S. just minimize the amount of imports coming in from all other countries?

  Calculate salt and pepper 2011 ebit

Salt and Pepper incurred $14.9 million in depreciation expense and paid $25.5 million in taxes on EBIT in 2012. Calculate Salt and Pepper's 2011 EBIT.

  How do changes in the mix of products impact breakeven

The overall concept of CM is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit, after variable costs are taken care of.

  Trade off theory and pecking order theory

Several theories are proposed to explain how companies deal with debt and financial distress.

  The bs-option pricing mode

1. State the assumptions of the CAPM, MM Propositions, and the BS-Option Pricing Model.

  An individual consists of 30000 invested in a stock with a

an individual has 30000 invested in a stock with a beta of 0.7 and another 45000 invested in a stock with a beta of

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