i need help from 1-4
Part 1 Multiple choice: For each of the questions below. select one and only one answer, circle it on the FIRST page. {1 point each question, 4 points total 1. Which of the following numbers is closest to the average caprate on office properties in the US over the last 10 years? (A) 4% (B) 8% (C) 12% (D) 16% 2. Which of the following investments usually has the highest retum during a financial crisis (A) stocks (B) real estate equity (C) real estate debt (D) credit default swap 3. You buy a Principal Only Strip. The price at the time of purchase reflects a 7% expected annual prepayment rate. One hour after your purchase, the expected annual prepayment rate rises to 10%. The value of your security should? (A) remain the same (B) rise (C) fall (D) the answer cannot be determined with the given information 4. You buy a mortgage pass through security with a 5.5% coupon rate and a 7.5% discount rate. The price at the time of purchase reflects a 10% annual prepayment rate. One hour after your purchase, the expected annual prepayment rate falls to 5%. The value of your mortgage pass through security (A) remain the same (B) rise (D) the answer cannot be determined with the given information (C) fall Part II. Write your final answer (one number) on the FIRST page. {1 point each, 20 points total} 5. Ann wants to buy an office building which costs $1,000,000. She obtains a 30-year fully amortizing fixes rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and monthl payments. How much is Ann's monthly payment? N=360 I = 42, Pu = 1,000,000 * 606-8, PMT = 1: 0-3333 Pu = -800,000 - 3,819.13 6. Ann wants to buy an office building which costs $1,000,000. She obtains a 30-year fully amortizing fi. rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and mon payments. Ann has a balloon payment due 3 years after she gets the loan. If Ann pays the required mom payment for 5 years, how much is her balloon payment? Part 1 Multiple choice: For each of the questions below. select one and only one answer, circle it on the FIRST page. {1 point each question, 4 points total 1. Which of the following numbers is closest to the average caprate on office properties in the US over the last 10 years? (A) 4% (B) 8% (C) 12% (D) 16% 2. Which of the following investments usually has the highest retum during a financial crisis (A) stocks (B) real estate equity (C) real estate debt (D) credit default swap 3. You buy a Principal Only Strip. The price at the time of purchase reflects a 7% expected annual prepayment rate. One hour after your purchase, the expected annual prepayment rate rises to 10%. The value of your security should? (A) remain the same (B) rise (C) fall (D) the answer cannot be determined with the given information 4. You buy a mortgage pass through security with a 5.5% coupon rate and a 7.5% discount rate. The price at the time of purchase reflects a 10% annual prepayment rate. One hour after your purchase, the expected annual prepayment rate falls to 5%. The value of your mortgage pass through security (A) remain the same (B) rise (D) the answer cannot be determined with the given information (C) fall Part II. Write your final answer (one number) on the FIRST page. {1 point each, 20 points total} 5. Ann wants to buy an office building which costs $1,000,000. She obtains a 30-year fully amortizing fixes rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and monthl payments. How much is Ann's monthly payment? N=360 I = 42, Pu = 1,000,000 * 606-8, PMT = 1: 0-3333 Pu = -800,000 - 3,819.13 6. Ann wants to buy an office building which costs $1,000,000. She obtains a 30-year fully amortizing fi. rate mortgage with 80% LTV, an annual interest rate of 4%, with monthly compounding and mon payments. Ann has a balloon payment due 3 years after she gets the loan. If Ann pays the required mom payment for 5 years, how much is her balloon payment
