face value of S100,000and a coupon rate of 20%. The loan requires payment ofaccrued interest and one-quarter (25%) of the principaat the end of six months. The remaining principal andaccrued interest are due at the end of the year. lf therequired yield is 15%, what is the duration of the loan interm of years? (Please round your a

A 3/1 ARM is made for sh.150,000 at 7 percent with a 30-year maturity.i) Assuming that fixed payments are to be made monthly for three years and that the loan is fully amortizing, what will be the monthly payments? What will be the loan balance after three years?ii) What would be the new payments beginning in year 4 if the interest rate fell to 6 percent and the loan continued to be fully amortizing? iii) In (i) what would monthly payments be during year 1 if they were interest only? What would payments be beginning in year 4 if interest rates fell to 6 percent and the loan became fully amortizing?

A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months. If money is worth 5% compounded quarterl, find the following: a. the periodic payment b. the remaining liability after the 30th рayment

Please use the information in Question 5 to answer this question. You have taken out a 1/1 ARM (the teaser rate is locked for 1 year, and after this 1-year initial period, interest rate begins to adjust per year) with the following loan terms: • Loan amount: $300,000 • Annual rate cap: 2% • Lifetime cap: 6% • Margin: 300 bps (3%) • Teaser rate (annual): 5% • Market index rate at the beginning of year 1: 5.5% • Market index rate at the beginning of year 2: 6.5% • Loan term in years: 30 years Q6: Please calculate the monthly payment for year 1 $1,703.37 O $2,306.74 O $1,264.81 $1,610.46 No answer within +/-$10.0 of the correct one

Assume that you take out a $2000 loan for 30 months at 9% APR. What is the monthly payment? (Round your answer to the nearest cent.)

Suppose the two-year interest rate is r2 with quarterly-compounding and 30/360 daycount. Suppose the price today of a ZCB maturing in 4 years is Z(0,4). Give a formula for the two-year forward two-year libor rate L0[2,4] in terms of r2 and Z(0,4).

You have been assigned to estimate the interest rates that your company may have to pay when borrowing money in the near future. The following information is available.kPR = 2%MR = 0.1% for a 1 year loan increasing by 0.1% for each additional yearLR = 0.05% for a 1 year loan increasing by 0.05% for each additional yearDR = 0 for a 1 year loan, 0.2% for a 2-year loan, increasing 0.1% for each additional yearExpected Inflation Rates           Year 1 = 7%           Year 2 = 5%           Year 3 and thereafter = 3% a. Calculate the inflation adjustment (INFL) for a 5-year loan. b. Calculate the appropriate interest rate for a 5-year loan.

Calculate the monthly payment for a 15 year fixed loan at 4.3% per year compounded monthly if you are borrowing $350,000.00. The loan is amortized. Round your answer to the nearest cent.

Consider a $200,000 loan with fixed monthly payments. Compute the amount of interest savings when the term of the loan is 15 years and the interest rate is 6.2% versus when the term is 30 years and the interest rate is 7.5% assuming that the loan is held until its maturity. Ignore time value of money.

A loan of $4,000 is to be repaid by two payments of $1,500 due in three and eight months. A third unknown payment is due in thirteen months. What should be the size of the third payment if an interest rate of 6% is charged on the loan? Use today as the focal date.