The outstanding mortgage balance at the lower rate

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Reference no: EM132065256

1. Consider a 15-year, $135,000 mortgage with a rate of 5.75 percent. Four years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. A noncallable Treasury bond has a quoted yield of 4.78 percent. It has a 5.75 percent coupon and 13 years to maturity.

a. What is its dollar price assuming a $1,000 par value? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Dollar price $ 1092.40

b. What is its quoted price?

Quoted price :

Reference no: EM132065256

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