Answer:
Option C is correct.
The correct sequence is (2), (3), (1)
Explanation:
(2) Amounts deductible under other Code sections without regard to the nature of the activity, such as property taxes and home mortgage interest. should be deducted first
(3) Amounts deductible under other Code sections if the activity had been engaged in for profit, but only if those amounts do not affect adjusted basis (e.g., maintenance, utilities, and supplies). are deducted next
(1)Deductions affecting adjusted basis (e.g., depreciation) are taken next. At any point where the expenses exceed income, the deduction is limited to the remaining income.
Answer:
YTM = 6.51%
YTC = 6.40%
Explanation:
We need to solve using excel goal seek or bond formulas to generate the yield (interest rate) which matches the future couponb and maturity payment with the current selling price of the bond:
Present value of the coupon
C 40.000 (1,000 x 8% / 2 payment per year)
time 28 (14 years x 2 payment per year)
rate 0.032529972 (generate using goal seek tool)
PV $727.8688
Pv of the maturity (lump sum)
Maturity 1,000.00
time 28.00
rate 0.032529972
PV 408.06
PV c $727.8688
PV m $408.0612
Total $1,135.9300
As this is a semiannual rate we multiply it by 2
0.032529972 x 2 = 0.065059944 = 6.51%
We repeat the procedure with changing the time and end-value to adjust for the callabe conditions:
C 40.000
time 14 (7 years x 2 payment per year)
rate 0.032015131
PV $445.6984
Maturity 1,073.00 (call price)
time 14.00
rate 0.032015131
PV 690.23
PV c $445.6984
PV m $690.2316
Total $1,135.9300
Againg his will be a semiannual rate so we multiply by two:
0.032015131 x 2 = 0.064030263 = 6.40%
Answer:
-5/6
Explanation:
Fist find the common denominators of the two
Then you that minus sign in front of the fraction that means its negative
although theres an addition sign where subtracting fractions.
given it's in this order the fraction will be negative
:D
Complete question:
Under the TILA-RESPA Integrated Disclosure Rule (TRID), a lender must extend the closing how many days if the annual percentage rate (APR) has changed more than 0.125% before closing?
A) Two business days
B) Three business days
C) Five business days
D) Four business days
Answer:
A lender must extend the closing Three business days if the annual percentage rate (APR) has changed more than 0.125% before closing.
Explanation:
TRID is the standardized divulgation law for TILA-RESPA. The current RESPA and TILA regulation replaces a previous, detailed closing declaration and credit calculations for HUD-1 and Good Faith Calculations (GFE).
When the loan's interest rate is not locked when the loan estimate is issued and the rate of interest and credits for the hypothecary loan that adjust when it is locked many time later. A revised loan estimate is expected by the borrower no more than three working days after the date the interest rate is locked and the equate the revised loan estimate with the products and loan credits paid.
Answer:
False advertising and deceptive business practices. Consumer fraud issues. Predatory lending and financial scams. Issues regarding product safety and defects.
