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1. Suppose a $2 million repo earns $300 interest over its 3-day maturity. What is its yield?

2.02%

2.00%

1.80%

1.825%

1. Calculate the monthly payment for a 15-year fixed rate mortgage of $300,000 with 6% mortgage rate.

$2531.56

$2631.56

$2545.34

$2675.87

1. What is the interest paid in the first month? What is the amortization (principle paid) in the first month?

$1500; $1131.56

$1800; $731.56

$1500; $1031.56

$1500; $1045.34

1. What is the outstanding loan balance after 10 years of payments?

$130,946.36

$132,564.25

$148,899.45

$120,234.76

none of the above

1. Calculate the monthly payment for a 30-year fixed rate mortgage of $500,000 with 6% mortgage rate and a balloon payment of $300,000 at maturity.

$3023.45

$2789.78

$2845.32

$2699.09

none of the above

1. Assume we have a $2 million 10 year mortgage with annual payments beginning in exactly one year; the interest rate is 8%. Determine the annual mortgage payment under the following assumption. Verify your calculation by calculating the pay rate.

Loan is fully amortizing

$298,062.59; 14.90%

$287,786.55; 8.00%

$300,456.84; 17.56%

$254,678.45; 14.50%

1. Assume we have a $2 million 10-year mortgage with annual payments beginning in exactly one year; the interest rate is 8%. Determine the annual mortgage payment under the following assumption. Verify your calculation by calculating the pay rate.

Loan is partially amortizing with a balloon payment of $1,000,000.

$234,567.98; 12.88%

$229,032.27; 11.45%

$244,234.90; 8.0%

$228,456.12; 11.98%

1. Assume we have a $2 million 10-year mortgage with annual payments beginning in exactly one year; the interest rate is 8%. Determine the annual mortgage payment under the following assumption. Verify your calculation by calculating the pay rate.

It is an IO loan.

$200,000; 8.0%

$160,000; 0.073%

$180,000; 8.0%

$160,000; 8.0%

none of the above

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