In: Finance
•Assume you borrow from the bank $5,000,000. Assume you make quarterly payments. Further assume that the stated coupon rate is 9% per annum and the loan matures in 12 years. Determine the interest and principal payment for year 5.
• Assume you borrow from the bank $5,000,000. Assume you make quarterly payments. Further assume that the stated coupon rate is 9% per annum and the loan matures in 12 years. You also make a balloon payment of $1,000,000 in the last quarter. Determine the interest and principal payment for year 5.
•Assume you borrow from the bank $5,000,000. Assume you make quarterly payments. Further assume that the stated coupon rate is 9% per annum and the loan matures in 12 years. Determine the interest and principal payment for year 5.
Interest in year 5 = $337707.23
Principal in year 5 = $347939.32
• Assume you borrow from the bank $5,000,000. Assume you make quarterly payments. Further assume that the stated coupon rate is 9% per annum and the loan matures in 12 years. You also make a balloon payment of $1,000,000 in the last quarter. Determine the interest and principal payment for year 5.
Interest in year 5 = $360165.79
Principal in year 5 = $278351.46
* it is supposed to be APR per quarter