Question
Consider a mortgage loan of $250,000, given today, at the fixed mortgage rate of 6.076% per annum, compounded semi-annually, with amortization period of 20 years.
Consider a mortgage loan of $250,000, given today, at the fixed mortgage rate of 6.076% per annum, compounded semi-annually, with amortization period of 20 years. The renewed period is 2 years and the prepayment provision is 10%. The loan requires the monthly mortgage payments. Suppose after one year from today, the mortgage prepays $40,000 and the extra prepayment is subject to the 3-month interest rate penalty.
- Calculate the extra prepayment. (6 marks)
Calculate the 3-month interest rate penalty
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Futures Trading Demystified
Authors: Arvind Rajpurohit
1st Edition
979-8859974344
