Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.
Answer:
a. determining strategic initiatives based on business strategy translating initiatives into concrete learning activities facilitating
Explanation:
- The strategic training and the development is a similar to the strategy planning process and in general identification of the needs and evaluation of the alternative and incentives and the assigning the right audience and implementation
Answer:
$282,706
Explanation:
Calculation to Determine the purchase price of the house
First step
In order for us to determine the purchase price of the house we would be using TVM Calculation to find the PMT
Hence,
PMT =
PV = 200,000
FV = 0
N = 240
I = 0.084/12
Thus,PMT = $1,723.01
The Second step will be to Calculate the Loan Amount Using TVM Calculation,
PV =
FV = 0
PMT = -1,723.01
N = 360
I = 0.084/12
Thus, PV = $226,164.98
Last step is to Determine the purchase price of the house
Using this formula
Purchase price=PV/(100%-20% down)
Let plug in the formula
Purchase price =226,164.98/(0.80)
Purchase price = $282,706
Therefore the purchase price of the house will be $282,706
Answer:
Advantages of beekeeping as an income generation activity
Beekeeping has positive ecological consequences. Bees play an important role in the pollination of many flowering plants, thus increasing the yield of certain crops such as sunflower and various fruits. Honey is a delicious and highly nutritious food.
Answer and Explanation:
The computation of the YTM is shown below:
Given that
Future value be $1,000
NPER is 25
PMT is $80
Present value is $925
The formula is shown below:
=RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to maturity is 8.75%
Now the capital gain is
= 8.75% - ($80 ÷ $925)
= 8.75% - 8.65%
= 0.10%
