Which of the following closing costs DO NOT increase the lender's effective loan yield? A.) Discount...

Which of the following closing costs DO NOT increase the lender's effective loan yield?

A.) Discount points

B.) Prepayment penalties

C.) Title insurance charges

D.) Origination fees

Solutions

Expert Solution

Ans C.) Title insurance charges

The following closing costs increase the lender's effective loan yield Discount points, Prepayment penalties, Origination fees. The effective yield is the total yield an investor receives in contract to the nominal yield.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Find the lender's yield for this loan: Loan amount: $100,000, Term: 25 years, Interest rate: 8%,...

Find the lender's yield for this loan: Loan amount: $100,000, Term: 25 years, Interest rate: 8%, Lender "points" and origination fee: 2,500, Third-party fees: $3,000. Assume the loan is held until the end of year 5.

What is the discount yield, bond equivalent yield, and effective annual return on a $5 million...

What is the discount yield, bond equivalent yield, and effective annual return on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield _____ % Bond equivalent yield ______ % Effective annual...

1. What is the discount yield, bond equivalent yield, and effective annual return on a $1...

1. What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 97 3/8 percent of its face value and is 55 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield % Bond equivalent yield % Effective annual return % ...

What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...

What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 97.375 percent of its face value and is 75 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

1-What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...

1-What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 96.375 percent of its face value and is 65 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield...% Bond equivalent yield...% Effective annual return...% 2-What is the discount yield,...

Determine the effective annualized costs of forrgoing the trade credit discount on the following terms A....

Determine the effective annualized costs of forrgoing the trade credit discount on the following terms A. 3/10 net 40 B. 2.20 net 40 4/20 net 60

Determine the effective annualized costs of forrgoing the trade credit discount on the following terms A....

Determine the effective annualized costs of forrgoing the trade credit discount on the following terms A. 3/10 net 40 B. 2.20 net 40 4/20 net 60

How do you compute effective annual rate incorporating closing costs? Please give an example

A classic example of a discount loan is If the US Treasury Yield Curve is upward...

A classic example of a discount loan is If the US Treasury Yield Curve is upward sloping then it is indicating a A. downturn in the economy B. upturn in the economy C. no change to the economy (i.e. the economy is in transition phase) D. The US Treasury Yield Curve yield does not signal the direction of the economy. E. The US Treasury Yield Curve maps out corporate borrowing levels Using the Fischer Equation what is the nominal rate...

Which of the following statements is FALSE? Select one: a. With a discount loan, the borrower...

Which of the following statements is FALSE? Select one: a. With a discount loan, the borrower is required to pay the interest at the end of the loan period. b. A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing. c. Bridge loans are often quoted as discount loans with fixed interest rates. d. After a natural disaster, lenders may provide businesses with short-term...

Subjects