1. Please calculate the effective yield for 10% rate where compounding periods are 1, 2, 4, 12 times per year.
2. Please calculate the nominal rate of 9.5% EY where compounding periods are 1,2,4,12 times per year.
3. What rate would we need on a mortgage to be equivalent on an effective yield basis with a bond that has a 7.5% interest rate?

Please calculate the monthly mortgage payment using CPM of the following mortgages in questions 4-6:

4. 100,000 loan amount, 7% rate 30 year amortization
5. 250,000 loan amount 6.25% rate 25 year amortization
6. 300,000 loan amount 5.10% rate 20 year amortization
7. Floating rate. How much interest is paid over 5 years on an $500,000 interest only loan where the margin is 3% the teaser rate is 2% and the adjustment indices are 1.5%, 2.25%, 4.75% and 5.25% for years 2,3,4,5, respectively. There is a 2% annual cap and an 8% lifetime cap.
8. Location quotient: US has 137,19,900 jobs of which 8,366,600 jobs are in the finance activities. New York City has 4,493,600 total jobs 471,800 in finance activities. What is the location quotient?
9. Loan Qualification: A couple wants to buy a $500,000 house. Current interest rates are 5% on a 30-year amortizing loan. Taxes are 10,000 and insurance is 2,000 per year. They have a car loan for $300, student loans of $900 and credit cards of $250 per month. They can get a 90% ltv but that would add 0.375% to the rate and add 3,000 to the closing costs for Mortgage Insurance. Or they could just take an 80% ltv loan. What would they need to make to qualify for the two scenarios? The front ratio or housing ratio is 28% and the back ratio or is 43%.
10. You buy a house for 300,000 with 75 percent financing. The mortgage is a 25 year self-liquidating loan, with a 5% interest rate and 1 point up front. After 10 years, the property value went up 4 percent per year. What annual rate of return did the owner receive given the price appreciation and mortgage payments during the hold period.
11. A bank offers you two rates. The first is a 5% rate on a 30 year self liquidating mortgage for 75% of the 400,000 value. The second option is 7.5% for 90% financing also on 30 year amortization. What is the marginal cost of borrowing.