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In: Finance
4. Make an amortization table for a plain vanilla CPM fully amortizing with the following terms....
4. Make an amortization table for a plain vanilla CPM fully amortizing with the following terms. 30 year monthly payments 4.5% Interest rate $1,000,000 initial loan amount. a. How much interest is paid on the loan over the first 2 years? b. How much interest is paid on the loan over the last 2 years? c. If 25 years from now interest rates drop to 2%, would the borrower be likely to refinance? Why or why not? ****NEED THIS IN EXCEL*** PLS
Solutions
jeff jeffy answered 2 years agoRelated Solutions
4. A $600,000 CPM fully amortizing loan is made, at a 4% interest rate compounded monthly,...
4. A $600,000 CPM fully amortizing loan is made, at a 4%
interest rate compounded monthly, for a 30 year term. Loan comes
with a charge of 5 points. What is the effective annual rate on the
loan?
*do work in EXCEL please*
What are the major differences between the four CPM loans: Fully Amortizing: Partially Amortizing: Interest Only:...
What are the major differences between the four CPM loans:
Fully Amortizing:
Partially Amortizing:
Interest Only:
Negative Amortizing:
A borrower has the following two financing options: 80% LTV fully amortizing CPM for 25 years...
A borrower has the following two financing options: 80% LTV
fully amortizing CPM for 25 years at 8% or 90% LTV CPM loan at 9%
with similar terms. The borrower is not planning to prepay the
loan.
a. Compute the incremental cost of borrowing the additional 10%
(any property value should works).
b. What is the incremental cost of borrowing the additional 10%
if the lender charges 2 discount points additional on the 90%
loan?
c. Redo (b) assuming the...
1. A fully amortizing CPM loan is originated for $600,000 at 3.6% for 25 years. Please...
1. A fully amortizing CPM loan is originated for
$600,000 at 3.6% for 25 years.
Please show the following, what is the remaining
mortgage balance at the end of 12 years and how much interest did
the lender collect over the 12 years.
Moreover, assume that the borrower decides to reduce the
loan balance by $60,000 at the end of year 12. Please show what is
the new loan maturity if the loan payments are not reduced and
after that...
A fully amortizing CPM loan is made for $150,000 at 5% interest rate for 20 years...
A fully amortizing CPM loan is made for $150,000 at 5% interest
rate for 20 years with monthly repayments.
1. Calculate the monthly debt service.
2. What will be the outstanding loan balance at the end of year
10 and how much total interest will have been paid on the loan by
then?
3. If the borrower chooses to reduce the loan balance by $20,000
at the end of year 10, when will the loan be fully repaid if the...
Compare the following pairs of terms: a) A note and a mortgage (5 marks) b) Fully-amortizing...
Compare the following pairs of terms:
a) A note and a mortgage
b) Fully-amortizing loans and negative-amortizing loans
c) Abstract of title and title
d) General partnership and limited partnership
A borrower gets a fully amortizing constant amortization mortgage (CAM) for $200,000 at 12% annual interest...
A borrower gets a fully amortizing constant amortization
mortgage (CAM) for $200,000 at 12% annual interest rate for 15
years with monthly repayments.
1. Compute the loan repayments, principal amortizations, and
interest payments for the first 6 months.
2. Redo the same calculations assuming the loan is a fully
amortizing CPM, all else the same.
3. Which of the two amortization structures (CAM or CPM) would
be riskier for the lender?
4. Which the two loan structures would provide a...
On the second tab build the full amortization table for a 15 year Constant Amortizing Mortgage...
On the second tab build the full amortization table for a 15
year Constant Amortizing Mortgage (CAM) Loan with a 6% interest
rate compounded monthly. The initial loan amount should be
$7,500,000. in excel
Consider the following European plain vanilla options: (1) a call with strike price K = 160,...
Consider the following European plain vanilla options: (1) a
call with strike price K = 160, (2)
a put with strike price K = 160, (3) a call with strike price Kc =
165, and (4) a put with strike
price Kp = 155. All options have the same non-dividend-paying
underlying stock and mature
after one year. Assuming current stock price 160, stock price
volatility 22%, and continuously compounded
risk-free interest rate 0.49%.
Assume a long position in options (1)...
Consider the following European plain vanilla options: (1) a call with strike price K = 160,...
Consider the following European plain vanilla options: (1) a
call with strike price K = 160, (2)
a put with strike price K = 160, (3) a call with strike price Kc =
165, and (4) a put with strike
price Kp = 155. All options have the same non-dividend-paying
underlying stock and mature
after one year.
a) Assuming current stock price 160, stock price volatility 22%,
and continuously compounded
risk-free interest rate 0.49%, compute the prices of options
(1)–(4)...
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