Part I. Multiple choice: For each of the questions below, select one and only one answer, circle it on the FIRST page. {1 point each question except for Q0} 0.0 points) Have you printed your name on the FIRST page with LARGE LETTERS that are easy to read? A) Yes (B) No 1. Pick the number closest to the current average interest rate on a 30-year fixed rate mortgage in the US (A) 2% (B) 4% (C) 8% (D) 16% 2. Which of the following deed types protects the buyer from encumbrances that arose only during the time at which the current grantor held title? (A) general warranty deed (B) special warranty deed (C) quitclaim deed (D) all of above provide the same level of protection 3. If a borrower lives in a recourse state and defaults on a mortgage note that contains an exculpatory clause and the lender receives less than the amount owed on the mortgage when the property is sold, the lender will... (A) do nothing since the lender is limited to the proceeds from the sale of the property (B) seek the difference from the borrower's title insurance company (C) file for bankruptcy protection (D) take legal action against the borrower to recover the difference 4. Choose the picture that represents an inverted yield curve best. L L tt Part II. Write your final answer (one number) on the FIRST page. [1 point each) 5. A borrower with two mortgages defaults. At the time of the default, the first lien has a balance of $200,000, the second lien has a balance of $50,000. The borrower owes $5,000 in property taxes. The house sells for $150,000 in a foreclosure auction. How much of a deficiency will the first lien lender have (in dollars, not %)753K 6. You deposit $50,000 once at an interest rate of 2.40% compounded monthly. How much will you have in 30 years? PV - SOK 1:0.2 N: 3601 FV 102, 647.83 7. You save $500 every week (i.c.not once) to your bank account. The bank pays you 3% compounded weekly to the same account. How much money will you have in your bank account in 35 years? (Note: there are 52 weeks in a year) PMI:-500 N=1920/1: FV: 1,609, 214.56 0.0571307 8. You buy a 30-year zero coupon bond with a face value of $1000 and a 4% interest rate, compounded semi- annually. The moment after you buy the bond, the interest rate falls to 3%, compounded semi-annually. What is the percent change in the bond price? Note: the sign is important! NEGO I:2 1.5 PMT:0 FV:1000 IPV - PVisi-409.29 9.bank offers a 30-year annuity with monthly payments of $2.000 (the first payment comes in 1 month from today). If the discount rate is 5%, compounded monthly, how much should this annuity cost today? N = 360/PMT = -2000 = 3/12 L 312,563.23/4 0.41666 -242403%. PV : 504.79 Part I. Multiple choice: For each of the questions below, select one and only one answer, circle it on the FIRST page. {1 point each question except for Q0} 0.0 points) Have you printed your name on the FIRST page with LARGE LETTERS that are easy to read? A) Yes (B) No 1. Pick the number closest to the current average interest rate on a 30-year fixed rate mortgage in the US (A) 2% (B) 4% (C) 8% (D) 16% 2. Which of the following deed types protects the buyer from encumbrances that arose only during the time at which the current grantor held title? (A) general warranty deed (B) special warranty deed (C) quitclaim deed (D) all of above provide the same level of protection 3. If a borrower lives in a recourse state and defaults on a mortgage note that contains an exculpatory clause and the lender receives less than the amount owed on the mortgage when the property is sold, the lender will... (A) do nothing since the lender is limited to the proceeds from the sale of the property (B) seek the difference from the borrower's title insurance company (C) file for bankruptcy protection (D) take legal action against the borrower to recover the difference 4. Choose the picture that represents an inverted yield curve best. L L tt Part II. Write your final answer (one number) on the FIRST page. [1 point each) 5. A borrower with two mortgages defaults. At the time of the default, the first lien has a balance of $200,000, the second lien has a balance of $50,000. The borrower owes $5,000 in property taxes. The house sells for $150,000 in a foreclosure auction. How much of a deficiency will the first lien lender have (in dollars, not %)753K 6. You deposit $50,000 once at an interest rate of 2.40% compounded monthly. How much will you have in 30 years? PV - SOK 1:0.2 N: 3601 FV 102, 647.83 7. You save $500 every week (i.c.not once) to your bank account. The bank pays you 3% compounded weekly to the same account. How much money will you have in your bank account in 35 years? (Note: there are 52 weeks in a year) PMI:-500 N=1920/1: FV: 1,609, 214.56 0.0571307 8. You buy a 30-year zero coupon bond with a face value of $1000 and a 4% interest rate, compounded semi- annually. The moment after you buy the bond, the interest rate falls to 3%, compounded semi-annually. What is the percent change in the bond price? Note: the sign is important! NEGO I:2 1.5 PMT:0 FV:1000 IPV - PVisi-409.29 9.bank offers a 30-year annuity with monthly payments of $2.000 (the first payment comes in 1 month from today). If the discount rate is 5%, compounded monthly, how much should this annuity cost today? N = 360/PMT = -2000 = 3/12 L 312,563.23/4 0.41666 -242403%. PV : 504.79
