An Interest Only Strip holder benefits from higher interest rates than expected prepayments, and a Principal Only Strip holder benefits from lower than expected prepayments and interest rates.
<h3>What is the difference between Principal Only (PO) Strips and Interest Only (IO) Strips?</h3>
The holders of PO strips benefit when the investment period is cut short because they will only ever see the face value of their investment.
In order for the mortgage holders in the pool to continue making payments (including interest) on their current loan rather than attempting to refinance into a new one, they want to see interest rates at the same level or higher.
Therefore, A principal only strip holder benefits from lower than anticipated prepayments and interest rates, while an interest only strip holder benefits from higher interest rates than anticipated prepayments.
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Answer and Explanation:
The classifications are as follows
1. Product cost and the manufacturing overhead
2. Period cost
3. Product cost and direct labor
4. Period cost
5. Product cost and the manufacturing overhead
6. Product cost and the manufacturing overhead
7. Product cost and direct material
8. Period cost
9. Product cost and direct material
10. Product cost and direct material
11. Period cost
12. Product cost and the manufacturing overhead
13. Product cost and the manufacturing overhead
14. Product cost and direct labor
Answer:
transaction record and a reconciliation of the transactions
An adequate bank balance and a budget.
Legal guardianship of the person and power of attorney
Your documentation as payee for the person you support and the bankbook
Answer:
Close-ended questions
Explanation:
Flora should simply ask people if they choose her dealership for service, reputation, or location, which would be a close-ended question.
She could also use some probing questions in order to further research the reasons why customer prefer her dealership.
Answer:
The answer is 5.13percent
Explanation:
The formula to be used here is from Capital Asset Pricing Model (CAPM) and it is used to determine the cost of equity or the expected return on a company's equity.
The formula is
Ke = Rf + beta(Rm - Rf)
Where Ke is Cost of equity(13 percent)
Rf is the risk free rate of return
Rm is the market risk(9.5 percent)
beta = 1.80
To solve for Rf;
0.13 = Rf + 1.8(0.095 - Rf)
0.13 = Rf + 0.171 - 1.8Rf
0.13 - 0.171 = Rf - 1.8Rf
-0.041 = -0.8Rf
Rf = 0.041 ÷ 0.8
=0.0513
5.13percent
