What is the impact on the value of the mortgage

Assignment Help Finance Basics
Reference no: EM131129148

A bank issues a $100,000 fixed-rate 30-year mortgage with a nominal annual rate of 4.5%. If the required rate drops to 4.0% immediately after the mortgage is issued, what is the impact on the value of the mortgage?

Reference no: EM131129148

Questions Cloud

Describe the difference between verification and validation : Do both make use of test-case design methods and testing strategies?
Calculate the duration of mortgage with a nominal annual : Calculate the duration of a $100,000 fixed-rate 30-year mortgage with a nominal annual rate of 7.0%. What is the expecte
What are they and can they be measured directly : What are they and can they be measured directly?
Cruise liner provisioning certain consumable item : Consider a cruise liner provisioning a certain consumable item for her next trip. In the first stage, the cruise liner procures from the home port region right before the start of the trip. The unit cost for the item at home port is c_1. The trip dur..
What is the impact on the value of the mortgage : A bank issues a $100,000 fixed-rate 30-year mortgage with a nominal annual rate of 4.5%. If the required rate drops to 4.0% immediately after the mortgage is issued, what is the impact on the value of the mortgage?
Calculate the cost of marketing several products : A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to: read all requisitions very carefully. allocate advertising expense to general overhead. reorganize some of the company`..
What is the first thing that you should do : What is the first thing that you should do? What's next?
About the transgressions of a certain politician : If the probability is 0.75 that a person will believe a rumor about the transgressions of a certain politician, find the probabilities that (a) the eighth person to hear the rumor will be the fifth to believe it;
Taping a television commercial the probability : When taping a television commercial, the probability is 0.30 that a certain actor will get his lines straight on any one take. What is the probability that he will get his lines straight for the first time on the sixth take?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why is it important to bank managers

What does the net interest margin measure, and why is it important to bank managers?

  Process of self-examination

1. As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job. Casey realizes that she has a personal characteristic that suggests she is not comfortable ..

  Explain whether the price change is due to supply or demand

Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the i..

  The company is subject to a tax rate of 40 the transaction

if a transaction gives rise to an extraordinary loss of 100000 and the company is subject to a tax rate of 40 the

  What is the present value of the savings if the interest

You are thinking of building a new machine that will save you $1000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2% per year forever.What is the present value of the savings if the interest rate ..

  Calculate the price and value of the company

Calculate the price and value of the company based on these two VC offers. Provide the Cap Tables for these two offers.

  Question regarding portfolio performance

What advice would you give her to maximize her portfolio's performance?

  Do the color distributions appear to be the same

Do the color distributions appear to be the same or different? Explain, using conditional probabilities.

  If the fed decides to raise interest rates next year whta

if the fed decides to raise interest rates next year whta effect would risingrates have upon the following 1consumer

  Write a paper about ethics in financial reportingrm

Write a paper about Ethics in Financial Reporting. APA format, In cite citation, 2 References, 350 words and Stay on topic.

  Using the black-scholes option pricing model what would be

assume you have been given the following information on purcell industriescurrent stock price 18exercise price of

  The appropriate rate for pharasalus'' stock

Pharsalus inc. just paid a dividend of 2.14 per share.  This dividend is expected to grow at a rate of 3.4% per year forever. The appropriate rate for Pharasalus' stock is 10.3%.  What is the price of the stock?  I have the answer but am confused as ..

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