1. Type out formula if there is one. 2. do math in excel and show formulas. 
14. You obtain a 100,000 mortgage that is amortized over 30 years. You will make quarterly payments. It came with a 4% interest rate. There are also loan origination fees of 2% of the loan and prepayment penalty of 3% of the remaining balance at the time of prepayment. After five years you will pay of the loan. What is the effective annual interest rate that the bank earned during the duration of this loan? 15. You are the president of lending. You want to attract borrowers with low "interest rates, but you still have a certain yield that the bank needs to earn. Therefore, you offer rates at 3%. What loan origination fee do you need to charge in order to act " as if your bank was lending at a 3.5% rate if the term of the loan is 30 years, paid monthly, and will be prepaid at the end of ten years? 16. As a bond manager, you purchased a bond with a coupon rate of 3.25%. The coupon payments are paid quarterly. The current price is $9,563 and has a YTM of 4.63%. Its par value is $10,000. How many years are there until this bond matures? 17. You are a contractor and you are not receiving rent as you're developing a property, so you would like to minimize your monthly mortgage payment. Therefore, you decide on a negative amortization loan. The loan amount is $1,500,000 with a 5% interest rate. The term is 25 years. The monthly payment is $5,000. There will be a balloon payment after five years. After three years, what is the outstanding balance of this loan? 14. You obtain a 100,000 mortgage that is amortized over 30 years. You will make quarterly payments. It came with a 4% interest rate. There are also loan origination fees of 2% of the loan and prepayment penalty of 3% of the remaining balance at the time of prepayment. After five years you will pay of the loan. What is the effective annual interest rate that the bank earned during the duration of this loan? 15. You are the president of lending. You want to attract borrowers with low "interest rates, but you still have a certain yield that the bank needs to earn. Therefore, you offer rates at 3%. What loan origination fee do you need to charge in order to act " as if your bank was lending at a 3.5% rate if the term of the loan is 30 years, paid monthly, and will be prepaid at the end of ten years? 16. As a bond manager, you purchased a bond with a coupon rate of 3.25%. The coupon payments are paid quarterly. The current price is $9,563 and has a YTM of 4.63%. Its par value is $10,000. How many years are there until this bond matures? 17. You are a contractor and you are not receiving rent as you're developing a property, so you would like to minimize your monthly mortgage payment. Therefore, you decide on a negative amortization loan. The loan amount is $1,500,000 with a 5% interest rate. The term is 25 years. The monthly payment is $5,000. There will be a balloon payment after five years. After three years, what is the outstanding balance of this loan
