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show in excel please 2. A couple is trying to refinance their home which they bought 7 years ago for $420,000 using 30 year loan,

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2. A couple is trying to refinance their home which they bought 7 years ago for $420,000 using 30 year loan, 10% down and an annual mortgage rate of 4.6%. They currently are looking at a 20 year loan with a refinance rate of 3% on the remaining balance with an upfront cost of $5000. The upfront cost will be added to the amount of the new loan. Determine the monthly payment on the original loan. How much money is owed on the home after 7 years? I What will be the new monthly payment if they refinance? Would it be a good idea to refinance? Explain. If they sell the property, for $500,000 ten years after they bought it, (3 years after the refinancing), what would be their monthly return on investment? 3. A European investor decided to buy the bond listed in the file, "quiz 2 data 10AM" in 2015. What would be the yield to maturity in Euros? If an American investor bought the bond at the same time, 2015, what would be the yield to maturity in dollars? Wlay the difference? Explain. What would be the yield to maturity for an American investor who bought the bond in 20112 X Quiz 2 data 10AM.xlsx B D C maturity par coupon $4.20 Price in 2011 $99.50 2021 $100.00 year price euro per usd 2015 $104.36 0.7291 2016 $130.52 0.7661 2017 $113.07 0.7362 2018 $114.94 0.7407 2019 $113.19 0.8857 2020 $123.50 0.9232 2021 $100.00 0.9264 3 2 1 2 23

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