Assignment Detail

Tutors

What is the outstanding balance now at the end

    Assignment Instructions

    Assignment ID: FG132995848

    Questions –

    Q1. A lender providing a loan of $9 million requires semi-annual payment of interest at a nominal rate of 10% compounded semi-annually, and repayment of the $9 million principal at the end of 5 years. The borrower plans to accumulate the principal for repayment at the end of 5 years using level semi-annual deposits into a sinking fund that earns interest at an annual nominal rate of 5.8% compounded semi-annually. What is the borrower’s total cash outlay every 6 months?

    Q2. A 20-year mortgage of $750,000 at an annual nominal rate of 10% compounded monthly has been paid with level payments for 17 years so far. Over the last 17 years, there have been 12 separate occasions when the borrower, Rachel, has managed to pay an additional $6900 against the outstanding balance. As a result, if Rachel continues with the same monthly rate, the mortgage will be paid off in only 14 more months. What is the outstanding balance now at the end of the 17th year?

    Q3. If a 10-year bond of face value of $1500 with semi-annual coupons of 7% has an annual nominal yield convertible semi-annually of 3.9%, what is the price of the bond?

    Need fresh solution to this Assignment without plagiarism?? Get Quote Now

    Expert Answer

    Asked by: Anonymous
    Plagiarism Checked
    Answer Rating:
    4.6/5

    Plagiarism free Answer files are strictly restricted for download to the student who originally posted this question.

    Related Assignments

    //
    Our customer support team is here to answer your questions. You can send Assignments directly to support team.
    👋 Hi, how can I help?