The writer is very fast, professional and responded to the review request fast also. Thank you.
Problem 1: Consider a typical $1,500,000 Canadian mortgage. Suppose that the current nominal interest rate is 6% and the maturity is set at 20 years. The rollover period is 2 years.
a) Find the monthly payment on this mortgage.
b) Suppose the nominal interest rate moves to 7% a day after the mortgage is issued. What is the market value of this mortgage?
c) Suppose the nominal interest rate moves to 4% 2 years from now. What will be the new monthly mortgage payments?
d) The lender would like to know the effective yield at t=0 under the assumption that the mortgage interest rate will drop to 4% 2 years from its origination and will remain at 4% until the end of the mortgage’s life. Formulate the equation for computing the effective annual yield.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more