QUESTION 15 A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 4.125% compounded monthly, with monthly payments.Suppose inflation is 2% per year, compounded monthly. What is the real value of the 20th payment? $7,031.61 56,787.54 $4,892.33 57,269.75 QUESTION 16 A bank originates a 30 year Fully Amortizing FRM at an annual interest rate of 4.5% with monthly compounding and monthly payments. If 10 years later, the bank borrows at 5.5%, what is this bank's Net Interest Margin (NIM) on this FRM? 4.50% 0 -1.00% 0.10.00% O 5.50% QUESTION 17 Lucy bought a house for $150,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same house. The house price grows 3.5% annually (compounded annually). Suppose buying costs are 5% (of the purchase price of the house) and selling costs are 8% (of the selling price of the house). Lucy will sell the house in one year. What is Lucy's annualized IRR? (hint: it will be negalive) QUESTION 15 A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 4.125% compounded monthly, with monthly payments.Suppose inflation is 2% per year, compounded monthly. What is the real value of the 20th payment? $7,031.61 56,787.54 $4,892.33 57,269.75 QUESTION 16 A bank originates a 30 year Fully Amortizing FRM at an annual interest rate of 4.5% with monthly compounding and monthly payments. If 10 years later, the bank borrows at 5.5%, what is this bank's Net Interest Margin (NIM) on this FRM? 4.50% 0 -1.00% 0.10.00% O 5.50% QUESTION 17 Lucy bought a house for $150,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same house. The house price grows 3.5% annually (compounded annually). Suppose buying costs are 5% (of the purchase price of the house) and selling costs are 8% (of the selling price of the house). Lucy will sell the house in one year. What is Lucy's annualized IRR? (hint: it will be negalive)