You take out a standard, 30 year mortgage with fixed monthly payments to purchase your house. The mortgage is for $250,000, with a nominal annual rate of 4.6% (monthly compounding). Each month you send in a check for $1.403.81, which is above the required payment, where the excess payment directly reduces the outstanding balance each month. What portion of your payments in months 25-36 go toward interest? 68.11% 71.76% 55.52% 64.47% 62.84% Your broker would like to sell you a security (S) that will pay you S185 each year for the next numents at Years 1-7) and will cost you $2.213.42 to purchase. A competing broker would like you to purchase a different security (s) that will pay you 5195 a quarter for the next 8 years (Oxuarters 32) and has promised you an effective annual rate of return that will be 20 percent higher (200 basis points) than the effective annual rate of return on the first security. Given this information, determine how much you should have to pay for this second security in order to earn this higher effective rate of return $3,814.59 $3,803.09 . $3,837.78 $3,849.46 $3,826.16 From a lawsuit. you have been awarded a 31 payment, constant growth annuity. The first par at Year 0 and is equal to $360, and each subsequent payment will be paid in 16 month intervals, with the final payment at Year 40. Further, payments will grow at a constant growth rate of 4 percent (payment 2 will be $360 x 1.04 - $374.40, etc.). The appropriate discount/compounding rate for this constant growth annuity is a nominal annual rate of 3.0 percent, with monthly compounding Given this information, determine the value, at Year 40, of this constant growth annuity. Enter your answer in dollars, rounded to the nearest whole dollar, with no punctuation. For emple if you answer is $15,222.54, enter "15223". 5pts You are borrowing $250,000 to buy a house, using a standard, 30-year mortgage. Yodt mort lender offers a 5.50% mortgage with no points, or a 5.20% mortgage with 0.80 points. You plan on living in the house for exactly X months, paying only the required payment each month, and without refinancing your mortgage. You find that you are indifferent between the two mortgage options using the 5.50% rate to discount cash flows between the two options. How many months are you planning on living in the house? Answer in months only, rounded to the nearest month. For example, if you answer is 12.11 months, enter "12". Atvour favorite annuity store. Annuities R Us, you see a security that offers 46 equal the first payment of $600 occurring today, and all other payments of $600 paid in succeed month intervals, payments will therefore be at months 0, 7, 14, 21 ... 294, 301, 308, and 315. You determine that the correct discount/compounding rate is a nominal annual rate of 5.0 percent, with monthly compounding. Given this information, determine the value of this annuity at Month 315. .$57,184 $39,014 $48,877 $67,259 $74,982 You have taken out a standard $250,000, 30-year mortgage, at a nominal annual rate of 4.70 with monthly compounding. Determine how much you will still owe on your morte, as a percento the original $250,000, after 15 years (180 payments) if you only make the required monthly payment 66.90% .66.23% 65.56% 67.56% 68.21% Aperpetuity has yearly cash flows in Years 20 through infinity, an EAR of 8 percent and Year of $492.39. What is the amount of the perpetuity payment in each of Years 20th infinity? $170 . $180 $160 $150 . $140 h your use on YOU 60 30/2007 You Yout extra toy each month above the r ed payment m e d payment you an additional Sxeach month for the three years punts the ay the required payment plus the SX each month Over time mortgage rates dropped. So, on December 31, 2019. you refinanced your o wn. You refinanced the ending balance after your 36 payment with a new standard 30 year forate mortgage with a contract interest rate of 3.8% (nominal, monthly compounding, with the fast payment due on January 31, 2020. You still wanted to completely payoff your house on YOUR birthday. So, you again calculated how much extra ($) to pay each month, above the required payment, and you make that payment each month, starting on January 31, 2020. As planned, with your payment on September 30th of your 60th birthday, your mortgage balance is exactly zero. What is SY? Answer is whole dollars, rounded to the nearest dollar, with no punctuation. For example, if your answer is $1,224.75, enter "1225". 2500 Now that the preference the corretter that the bectations theory above and the Maturity Prema n ews the number of years until maturity. Given this information, determine how much A5.000, deposited at the beginning of Year 3, and held over Years 3,4,5, and 6 (4 years, w e worth end of Year 6. $58,133.55 .$55,429.67 $56,781.61 . $60,837.44 $59.485.50 maturity risk premium of 10 year to many appe , MRP -0.10%), where to maturity. Hence the pure expectations theory IS NOT Vali Whatrate of return would on a 6-year Treasury security? 7.90% . 8.10% 7.70% 8.00% 7.80% Assume that a 10-year bond pays interest of $45 every six months and will mature for $1,000. Also the price of this bond is currently $1,046.94. Given this information, determine the yield-to-maturity for this bond. 8.4% 8.5% 8.3% 8.1% 8.2% UF issued a 20 year bond that para seminar coupon or $37.00, sa pova 3100 nominal annual yield to maturity of 7.632 percent. The bond can be called in years, and the annual yield-to-call is 10.15 percent. Determine the call premium for this bond $50 $30 $60 $40 $70 You purchase a 20 year bond that has a par value of $1,000 and pays an annual coupon of 10 every six months). The yield to maturity was 6,0 percent when you purchased this bond. Now. after you purchased this bond, the yield (reinvestment rate) went up to 13.0 percent (65 percent every six months). Determine your realized compounded yield if you hold this bond for 10 years, then sell it, and reinvestment rates stay at 13.0 percent for the entire 10-year period. Enter your answer in decimal format, to four decimal places. For example, if your answer is 3.11%. enter "0.0311" You purchase a 5 year bond that has a par value of $1,000 and an annual coupon payments each year (paid once a year). Based on this information, determine the duration in years of this bend if the annual yield-to-maturity is 120 percent. Enter your answer in years, to 2 decimal places. For example, if your answer is 7.7546 years.ente! "7.75