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- Q4: A dealer quotes a customer 7.35% to borrow for one year with interest paid monthly. The customer prefers to pay interest quarterly. What rate should the dealer quote instead?Accounting 1: Security A and security B both provide semi anual payment of 89 over 5Year. the annual rate of return for both securities is 6.5%. both securities will provide the smae number of payments, but the payments for Security A occur atthe beginning of the month and the payment for Security B occur at the end of the month. What is the difference in the present value of these two sets of payment? 12.86 18.96 15.86 25.98 24.36Use the following information about IGI security dealer. Market yields are in parenthesis, and amounts are in millions. Assets Liabilities and Equity Cash $10 Overnight Repos $170 1 month T-bills (7.05%) 75 Subordinated debt 3 month T-bills (7.25%) 75 7-year fixed rate (8.55% 150 2 year T-notes (7.50%) 50 8 year T-notes (8.96%) 100 5 year munis (floating rate) (8.20% reset every 6 months) 25 Equity 15…
- An investor buys a $10,000 face value T-bill at a bank discount quote of 5.76% with 175 days to maturity. The investor's actual annual rate of return on this investment is _____. Group of answer choices 4.80% 4.97% 6.01% 6.64%A client has a secured home equity line of credit with a balance of $ 125,458.45 and a limit of $ 350,000. Their payments are calculated based of prime rate +1.00% . (Prime rate is 2.45%)How much does the lender calculate for their monthly payment for consideration of an application?(0) (0) 30: Pind (a) the purchase price of the T-bill, (b) the maturity value, (c) the interest earned, and (d) he effective rate of interest. T-BILLS: Nina Horn buys $50,000 T-bill at a 5.8% discount rate for 26 weeks. (P)
- Complete the following table by using Table 15.1. ( Do not round intermediate calculations.Round your answers to the nearest cent.): Selling price: $158,000 Down payment: $31,000 Amount mortgage: ?? Rate: 6.50% Years: 30 Monthly payment: ?? First payment broken down into-- interest: ?? principle:?? Balance at end of month: ??4) You borrow $2500 on September 3rd this year. Your demand loan carries an interest rate of 7.46%. You make partial payments of $500 on October 15th and $1575 on November 17th, You want to make a final payment of the remaining outstanding balance on November 30tn. What is the size of your final payment? Use the declining balance method. A) $450.02 B) $399.76 C) $612.84 D) $851.11 E) $449A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43
- The following loan was paid in full before its due date. a) Find the value of h using an appropriate formula. b) Use the actuarial method to find the amount of unearned interest. c) Find the payoff amount. Regular Monthly Payment APR # of Payments Remaining after Payoff 8.7% 4 $214 What is the finance charge per $100 financed? h = $ (Round to the nearest cent.) The unearned interest is about $ (Round to the nearest cent.) The payoff amount is $ Enter your answer in each of the answer boxes. f12 inser f9 f1o f7 fg f6 f4 f5 esc 5 7 8. %24 3 %231. Anny takes out a loan of $1,400, at 4% interest, for 42 months. Use the formula MV = P + I to find the maturity value (in $). $ ____ 2. Determine the maturity date of the loan. Loan Date Time of Loan (days) Maturity Date July 10 220 ---Select--- January February March April May June July August September October November DecemberThe following information should be used for questions 8, 9 and 10. Plan accordingly to save time. A Collateralized Mortgage Obligation (CMO) principal balance is $1,000,000,000. The pass thru rate is 5.35%. The Weighted Average Coupon rate is 6.35%. The weighted Average Months is 350. The PSA is 90. The CMO (at the time the CMO is first created) is divided into 4 tranches (A,B,C,D), each with a par value of $250,000,000 and 5.35% coupon rate. Within how many months from the creation of the CMO will tranche C principal be totally paid? Group of answer choices a)30 b)55 c)207 d)350