Repayment rates are very high for two main reasons. Firstly, borrowers know that they cann
A、True
B、False
C、Not given
D、///
A、True
B、False
C、Not given
D、///
A、True
B、False
C、Not given
D、///
From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are i1 = 4.65 percent and i2 = 5.50 percent, respectively. Further, the current yield curve indicates that appropriate one-year discount corporate bonds are yielding k1 = 8.5 percent, and two-year coporate bonds are yielding k2 = 10.25 percent. a. Calculate the one-year forward rate on the Treasuries and the corporate bond. b. Using the current and forward one-year rates, calculate the marginal probability of repayment on the corporate bond in years 1 and 2, respectively. c. Calculate the cumulative probability of default on the corporate bond over the next two years.
61. Which of the following is the main purpose?
A.To remind students and their families to repay their loan
B.To compare interest rates
C.To inform students and parents of the various loans available
D.To show that government loans charge the least interest
If parents had three children in college how much could they borrow annually?A.900
B.3,000
C.300
D.9,000
It can be inferred from the passage that _______.A.the student‘s school determines who is an eligible lender
B.money is available for student loans
C.students need not be enrolled half time to borrow money
D.the interest rate on student loans is increasing
The highest interest rate is charged to _______.A.full-time students
B.parents
C.students borrowing from a credit union
D.half-time students
According to the passage which of the following is trueA.The government lends students enrolled at least half time up to 3,000 annually.
B.Students may borrow up to $4,500 annually from four sources.
C.Students enrolled less than half time may borrow money.
D.The current interest rate from banks is 5 percent.
请帮忙给出每个问题的正确答案和分析,谢谢!
Although Alecto Co is of the opinion that it is equally likely that interest rates could increase or fall by 0·5% in four months, it wishes to protect itself from interest rate fluctuations by using derivatives. The company can borrow at LIBOR plus 80 basis points and LIBOR is currently 3·3%. The company is considering using interest rate futures, options on interest rate futures or interest rate collars as possible hedging choices.
The following information and quotes from an appropriate exchange are provided on Euro futures and options. Margin requirements may be ignored.
Three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25
March 96·27
June 96·16
September 95·90
Options on three month Euro futures, €1,000,000 contract, tick size 0·01% and tick value €25. Option premiums are in annual %.
It can be assumed that settlement for both the futures and options contracts is at the end of the month. It can also be assumed that basis diminishes to zero at contract maturity at a constant rate and that time intervals can be counted in months.
Required:
(a) Briefly discuss the main advantage and disadvantage of hedging interest rate risk using an interest rate collar instead of options. (4 marks)
(b) Based on the three hedging choices Alecto Co is considering and assuming that the company does not face any basis risk, recommend a hedging strategy for the €22,000,000 loan. Support your recommendation with appropriate comments and relevant calculations in €. (17 marks)
(c) Explain what is meant by basis risk and how it would affect the recommendation made in part (b) above. (4 marks)
【C1】
A.in the event of
B.in the hope of
C.in the name of
D.in the case of
Qustion 1
听力原文: Personal loan
A: Good afternoon, Sir, at your service.
B: Oh, thank you. My name is Robert and I'd like to make some enquiries concerning mortgage loan facilities offered by your bank. Am I in the right place?
A: Yes, definitely Sir, please take a seat and let me get hold of a mortgage loan application form. Might I know some details about the property you intend to buy?
B: I decided to purchase an apartment in Sapphire Court on Stanford Road, south of our town. I have already made my down payment last week and now I am trying to get a mortgage loan to finance the purchase.
A: Oh, I see. Is Sapphire Court a new development and what is your purchase price?
B: No, it's a second hand property and as far as I know, it has been 5 years since the building was built. The owner is demanding for $1 million.
A: You mentioned that you have paid a down payment. If you don't mind, please tell me how much you have already paid mid the amount of loan you want from the bank?
B: I have paid $40,000 to the landlord through the real estate agent and I will just need$700,000 from the bank. What interest rates shall I pay if I'm approved to get the loan?
A: According to practice, we offer our customer mortgage loans on the basis of prime rate plus 1.5 %. At the moment, prime rate is 8 % so your mortgage loan, if allowed, will approximate to 9.5 %. But we might be able to offer you better terms depending on your profession. Let me first try to fill out this application form. for you. Can I have your ID card please?
B: But I might not want a loan from your bank if the terms are not suitable to me. Should I not fill in any form. at this stage?
A: Sir, the form. is just to record the appropriate details and in any case, we will have to conduct an evaluation of the property before we can approve a loan. In addition, we also need your signature when we come to the very end of the form. There is absolutely no commitment at this stage and you can rest assured that the bank will not force you to take up our loan facilities if you don't want to.
B: I understand. Here is my ID card. You can take a photocopy if you need.
A: Thank you Sir. Now I want the actual address and the size of the property. Do you want the repayment to spread across a 10-year schedule?
B: Yes, let's work on a 10-year repayment schedule, It's Apartment 8A, Sapphire Court, Stanford Road South, so it's on the 8th floor. The size is about 750 square feet as the landlord said. There are 2 bed rooms, a sitting mom, a bath mom and a kitchen. The main window faces the south.
A: That sounds rather attractive. We will conduct an evaluation to find out the size and other related facilities. That will give us an idea on how much we can lend. Normally we only lend to a maximum of 70% for second hand properties but if you are looking for $700,000, which is only about 66% of your purchase price, I believe there is high chance for the loan to be approved as the property is quite new.
B: Just now you mentioned possible better terms. What exactly are they?
A: Well, would you mind telling me your profession, your source of income and whether you intend to live in the apartment you purchase?
B: I'm an engineer in Arrow & Moral Electronics Inc. and my annual income is 260,000 dollars. I also receive additional income for the articles I write for the magazines, amounting to $3,000 a month. I do plan to live in Sapphire Court myself.
A: Good. Have you brought with you your salary or income tax statement?
B: I'm sorry. I didn't know you need them. But I can send them to you tomorrow.
A: Yes, please. We were talking about better terms just now. For certain profession, we offer special rates and if the property is to be used by the applicant, there will also be special consideration.
B: Is there any penalty if I make early repayment?
A: Only for the first year. There is no penalty if y
Such loans with good repayment prospects are called "hard loans".()
A.a bullet repayment
B.a balloon repayment
C.a basket payment
D.none of the above
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