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1 year ago

Jay's new loan to purchase a property includes the seller's existing mortgage. What type of loan is this

Business

1 answer:

timurjin [86]1 year ago

8 0

The type of loan that this is known to represent is what is referred to as the wraparound mortgage loan.

<h3>What is the wraparound mortgage loan?</h3>

This is the type of mortgage that has to do with the fact that the borrower is financing another loan when they have not been able to finance the original mortgage itself.

This type of loan is beneficial to a person given that they would be able to get a system of loan that may not have been possible before.

Hence we have to conclude that Jays financing a property when he has an existing mortgage is what is called the wraparound mortgage loan.

Read more on the wraparound mortgage loan here:

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Answer:

Providing a subsidy to correct for an underallocation of resources.

Explanation:

In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.

If the production of a product or service involves external benefits, then the government can improve efficiency in the market by providing a subsidy to correct for an underallocation of resources such as capital, land and labor used for production of these products.

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2 years ago

He vertical hierarchy is also known as _____.

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3 years ago

Neuman Corporation Convertible Bonds The following data apply to Neuman Corporation's convertible bonds: Maturity: 10 Stock pric

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Answer:

A. The bond’s conversion ratio is 28.57

B. The bond’s conversion value is $857.14

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D. The minimum price at which Neuman’s bonds should sell is $857.14

Explanation:

A. In order to calculate the bond’s conversion ratio we would have to calculate the following formula:

bond’s conversion ratio=par value/conversion price

According to the given data:

par value=$1,000

Conversion price=$35

Therefore, bond’s conversion ratio=$1,000/$35

bond’s conversion ratio=28.57

B. To calculate the bond’s conversion value we would have to make the following calculation:

bond’s conversion value=bond’s conversion ratio*Stock price

bond’s conversion value=28.57*$30.00

bond’s conversion value=$857.14

C. To calculate the bond’s straight debt value we would have to calculate the following formula:

bond’s straight debt value=PV(0.08,10,50,1,000)

bond’s straight debt value=$798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

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2 years ago

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Setler [38]

Answer:

8.14

Explanation:

The Rate of Return is 8.14 from my calculations which you can find in the attached file.

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2 years ago

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