Question
In: Finance
How many point must a lender charge to bring the contract rate of 4.0% up to...
How many point must a lender charge to bring the contract rate of 4.0% up to 5.0% for a 25-year loan (monthly payments) of $200,000? Assume the bank averages 10 years prior to payoff loan and solve to the nearest cent.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
How many points must a lender charge for a 5 percent, 30-year note to achieve a yield of 6%?
1. How many points must a lender charge for a 5 percent,
30-year note to achieve a yield of 6%? (Though the loan amount does
not matter, assume a $100,000 loan for computations) A. Assume the borrower holds the note for the entire termB. Assume the borrower holds the note for 5-years How does the
prepayment assumption affect the lender’s yield?2. You are offered a bullet loan of 250,000 at 6% for 36 months
with 2 points. What is your...
1. Why would a lender charge a lower contract interest rate coupled with a front-end fee?...
1. Why would a lender charge a lower contract interest rate
coupled with a front-end fee? Why not simply incorporate the
effective rate into the contract rate?
2. Because inflation causes real interest rates to be lower,
won’t lenders simply factor inflation into their contract rates so
that the real rate remains constant? With rational borrowers and
lenders, shouldn’t adjustments for anticipated inflation cancel out
inflation’s impact?
Two generals are preparing for a battle. Each must choose how many units to bring or...
Two generals are preparing for a battle. Each must choose how
many units to bring or whether they should just pass on the battle
and not fight. The generals must make their decisions
simultaneously. Each general can bring any number of units between
1 and 5, or he can pass. If either general passes or if they both
bring the same number of units, then each general has a payoff of
zero. If one general brings more units than the...
make up a physics problem that Regards Electric field from point charge and solve it make...
make up a physics problem that Regards Electric field from point
charge and solve it make up numbers and show all equations used
how many nucleotides make up a cordon ?
how many nucleotides make up a cordon ?
Long vs. short hedge, how to conduct them? Which contract to use? How many contract should...
Long vs. short hedge, how to conduct them? Which contract to
use? How many contract should be used? How to calculate net price
received/paid by hedging? Payoff compared to not hedging?
How many electrons did it lose in the process of acquiring this charge?
When a honeybee flies through the air it develops a charge of +20pC. How many electrons did it lose in the process of acquiring this charge? Express answer as a number
The director of publications for a university is in charge of deciding how many programs to...
The director of publications for a university is in charge of
deciding how many programs to print for football games. Based on
the data, the director has estimated the following probability
distribution for the random variable X= number of programs sold at
the university football game:
X 25,000 40,000 55,000 70,000
P(X) 0.1 0.3 0.45 0.15
a)Compute the expected number of program sold at the university
football game.
b)Compute the variance of program sold at the university
football game.
c)...
The director of publications for a university is in charge of deciding how many programs to...
The director of publications for a university is in charge of
deciding how many programs to print for football games. Based on
the data, the director has estimated the following probability
distribution for the random variable X= number of programs sold at
the university football game:
X 25,000 40,000 55,000 70,000
P(X) 0.1 0.3 0.45 0.15
a)Compute the expected number of program sold at the university
football game.
b)Compute the variance of program sold at the university
football game.
c)...
The University Secretary wants to determine how University grade point average, GPA (highest being 4.0) of...
The University Secretary wants to determine how University
grade point average, GPA (highest being
4.0) of a sample of students from the University depends on a
student’s high school GPA (HS), age of a student
(A), achievement test score (AS),
average number of lectures skipped each week (S),
gender of a student (where M=1 if a student is
male or 0 otherwise), computer or PC ownership of
a student (where PC=1 if a student owns a computer
or 0 otherwise),...
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