Question
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 1 year 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...
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
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
The following loan is fully amortizing. The loan is for $13,000 at 9% interest to be...
The following loan is fully amortizing. The loan is for $13,000
at 9% interest to be repaid over three (3) years.
Amortize this loan on a monthly basis.
Calculate the interest portion of the fourth (4th)
payment considering that an additional payment of $2,000
was made with the second payment.
The following loan is fully amortizing. The loan is for $13,000 at 10% interest to be...
The following loan is fully amortizing. The loan is for $13,000
at 10% interest to be repaid over three (3) years.
Amortize this loan on a monthly basis.
Calculate the interest portion of the fourth (4th)
payment considering that an additional payment of $2,000
was made with the second payment.
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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