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1. What is the effective interest rate if loan tersms are 30 yeras, 11%, 0 points, OFV, and PMI is 1/2 of 1% up front plus 1/4 of 1% paid monthly. You have 90% LTV.

a. Effective rate on entire balance = 11.34%

b. Effective rate on Top 10% = 14.11%

2. You have a bond with 5 years to maturity. It is a 9% coupon bond rate with a YTM of 11%.

Duration = 4.207

YEAR => CF

1 => 90

2 => 90

3 => 90

4 => 90

5 = 1090

3.

1. What is the effective interest rate if loan tersms are 30 yeras, 8%, 0 points, OFV, and PMI is 1/2 of 1% up front plus 1/4 of 1% paid monthly. You have 90% LTV.

a. Effective rate on entire balance = 8.35%

b. Effective rate on Top 10% = 11.16%

What is the effective interest rate if loan terms are 30 years, i 1%. O points, OFV, and PMI is 1/2 of 1% up front plus l/4 of 1% paid monthly. You have a 90% LTV II. 34% ) . , I So Effective rate on entire Balance Effective rate on Top 10% What is the effective interest rate if loan terms are 30 years, i 1%. O points, OFV, and PMI is 1/2 of 1% up front plus l/4 of 1% paid monthly. You have a 90% LTV II. 34% ) . , I So Effective rate on entire Balance Effective rate on Top 10%