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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<span>A. The relative price of goods and services. The law of demand and
supply explains the interaction between the supply and demand of a resource. The
law of demand states that if all things are equal, the higher the price the
lesser (quantity) the demand for the goods/services. While the
law of supply states that if all things are equal, the higher the price, the
higher the (quantity) supply of goods/services. </span>
C because you have to work with others in a work place to get something done but it really all depends on where you work at
We are recycling by turning off the lights.
Reusing by using outfits or jeans that aren’t dirty and don’t deserve to be in the washer.Conserving by going to school.What you can do is turn off other peoples lights when they forget to.
Answer:
77.5 units
Explanation:
Given that,
Lot size = 155 units
Raw material cost = $150
value added in manufacturing per unit = $300
Total cost per unit = $450
Lead time = 30 weeks
Annual demand = 4,200 units
Average cycle inventory = Lot size ÷ 2
= 155 ÷ 2
= 77.5 units
Value = Average cycle inventory × cost per unit
= 77.5 × $450
= $34,875
