A pass-through security issued by Royal Bank is backed by a pool of 5700 identical mortgages.The principal of each mortgage is $474,000. Each mortgage has a fixed annual interest rate of12% paid monthly and a maturity of 30 years.What is the amount of interest included in the second monthly payment?(Round your answer to the nearest integer, i.e. without decimals and please do notshow the $ sign in the answer e.g. if the answer is $15320.63, enter 15321).Answer:

Interest payments refer to the periodic cash outflow in the form of the expense of employing the…

Answered: A pass-through security issued by Royal…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 20-year mortgage has an annual interest rate of 5.5 percent and a loan amount of $210,000. (Hint: Use the "CUMPRINC" function in Excel.) What is the remaining balance at the 72th payment? Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. Balance $ 41,010.77x
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at an annual interest rate of 4.24%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? _____ (b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) _____$ (c) If the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change?
A bank offers 30-year, $200,000 mortgages (monthly payments) at 6.2 percent and charges a $6,000 refundable loan application fee. The current disclosure law requires that any fees that will be refunded if the applicant is rejected be included in calculating the APR. What is the APR that they are required to disclose? Write your answer as a whole number with 2 decimals: eg, 6.512% = 6.51.
Dinero Bank offers you a $39,000, 8-year term loan at 7 percent annual interest. Required: What will your annual loan payment be? (Do not round your intermediate calculations.) $7,475.82 $6,531.24 $6,988.43 $6,786.58 $6,280.40
Given the following information of the mortgage pool that backs a MPT, what is the regular scheduled payment in month 1 of the security? Use WAC as the mortgage rate and WAM as the number of periods for your calculations. Round your final answer to two decimals. • 30 year FRM, fully amortizing, monthly payments • Loans seasoned for 3 months before entering pool • WAM: 357 • WAC: 4% • Servicer/Guarantee fee: 0.55% • Starting pool balance: 250,342,967 • Prepayment assumption: 75% PSA
Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at the interest rates shown. Use this information to answer the following questions. (Round your answers to the nearest cent.) Amount of Mortgage ($) 100,000 100,000 100,000 100,000 100,000 100,000 Interest Rate (%) 3 4 5 6 7 8 Monthly Payment ($) 421.60 733.76 (a) What is the difference in monthly payments between a $100,000, 30-year mortgage secured at 7%/year and one secured at 3%/year? (b) Use the table to calculate the monthly mortgage payments on a $130,000 mortgage at 4%/year over 30 years. Use the table to calculate the monthly mortgage payments on a $80,000 mortgage at 4%/year over 30 years.
1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years, the bank will pay $5,310.00 to the certificate owner. Based on a three- month interest period: What is the interest rate the bank is paying you each interest period? b) deposit? What are the nominal and effective interest rates on this certificate of
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 an annual interest rate of 4.29%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) tf the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change? Yes No
Consider a 30-year, traditional mortgage on a $220,000 property. With 30% down payment and a 3% APR. Mortgage payments are made monthly. What is the 216th payment? Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal (e.g., for $12,345.67, type 12345.67).
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A 30-year mortgage has an annual interest rate of 6 percent and a loan amount of $260,000. (Hint: Use the "CUMPRINC" function in Excel.) What is the remaining balance at the 60th payment? Note: Round your answer to 2 decimal places. Balance
A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank guarantees an interest rate and the saver commits to leaving his or her deposit in the account for an agreed-upon period of time. National Trust Savings offers five-year CDs at 8.33% compounded daily, and Bank of the Future offers five-year CDs at 8.36% compounded annually. Compute the annual yield for each institution. (Round your answers to two decimal places.) NTS BF %

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