Question
1-. Assume a borrower is given the following options for payment of a $100,000 loan. 5-year amortizing loan paying annual interest rates of 8%. 5-year
1-. Assume a borrower is given the following options for payment of a $100,000 loan. 5-year amortizing loan paying annual interest rates of 8%. 5-year non-amortizing loan with principal payment at maturity paying annual rates of 8%. 5-year loan with interest payments only for year 1-3 and principal payments of $50,000 in years 4 and 5. Show the payments for all three loans.
2- The following options were given to a borrower for payment of a $250,000 loan. 10-year amortizing loan paying annual interest rates of 9%. 10-year non-amortizing loan with principal payment at maturity paying annual rates of 10%. 10-year loan with a 9.5% interest rate. The borrower only pays interest for 5 years. In year 6, he will begin to pay principal payments of $50,000 every year till year 10. Show the payments for all three loans.
3-. A 330-day T-Bill is currently selling at a discount rate of 3.97%. by investor in 330 days. What will be the price of the T-Bill with a face value of $2 million? What is the return on the T-bill if the investor holds till maturity?
4- Assume that interest rate on a 182-day, $1 million face value, T-Bill is currently selling at a discount rate of 4.15%. What is the price of the T-Bill? What is the realized or holding period return of the bond?
1-. Assume a borrower is given the following options for payment of a $100,000 loan. 5-year amortizing loan paying annual interest rates of 8%.5-year non-amortizing loan with principal payment at maturity paying annual rates of 8%.5-year loan with interest payments only for year 1-3 and principal payments of $50,000 in years 4 and 5. Show the payments for all three loans. 2- The following options were given to a borrower for payment of a $250,000 loan. 10-year amortizing loan paying annual interest rates of 9%. 10-year non-amortizing loan with principal payment at maturity paying annual rates of 10%. 10-year loan with a 9.5% interest rate. The borrower only pays interest for 5 years. In year 6, he will begin to pay principal payments of $50,000 every year till year 10. Show the payments for all three loans. 3-. A 330-day T-Bill is currently selling at a discount rate of 3.97%. by investor in 330 days. What will be the price of the T-Bill with a face value of $2 million? What is the return on the T-bill if the investor holds till maturity? 4- Assume that interest rate on a 182-day, $1 million face value, T-Bill is currently selling at a discount rate of 4.15%. What is the price of the T-Bill? What is the realized or holding period return of the bondStep by Step Solution
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