FIN 510 S23 Study Guide Exam 3 (1)

Question 4 Which of the following are secured loans? (select all that apply) mortgages credit card debt car loans student loans

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Pls help ASAP for both

Loan Servicing Companies.. O Collects monthly payments, remits to investor O Purchase loans on the secondary market O Decide on credit criteria for new loans O Underwrite home loans

Going to a bank and applying for a mortgage loan would be an example of what type of financing?    Group of answer choices   Equity Financing Debt Financing Liquidiity Financing Abraham Lincoln

Mortgage Bankers provide all of the following functions EXCEPT: originate mortgage loans, provide processing services, package mortgages and sell them in secondary markets O Processing Loans Originate Loans O Loan Servicing O Underwriting Loans

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With a Fixed-Rate Mortgage, the bears the interest rate risk and with an Adjustable Rate Mortgage or ARM, the bears the interest rate risk. O A. borrower; lender O B. borrower; borrower O C. lender; lender O D. lender; borrower OE. federal government; pool organizer

Part I(1) What does it mean to amortize a bond premium or discount? Why is it necessary? (2) What are the two bond amortization methods mentioned in the book and how are they different? Part IIPlease select ONE of the problems below and record the proper journal entry for recording the issuance of the bond. Hint: You will need to refer to the Present Value Tables.pdf  Download Present Value Tables.pdf. Please indicate which scenario you are answering. (a) On January 1, a corporation issued a $1 million, five-year, 10 percent bond that pays interest semiannually. The market interest rate on January 1 was 12 percent. (b) On January 1, a corporation issued a $1 million, five-year, 11 percent bond that pays interest semiannually. The market interest rate on January 1 was 10 percent. Part IIIPlease describe what is meant by “Times Interest Earned.” How is it calculated? Suppose you calculated this ratio for a company for two consecutive years and the results were the following:      Year…

Define the term amortized but write down its meaning in your own words in reference to amortized mortgages.   Explain what an interest only mortgage is and who is eligible for these types of mortgages   Is a mortgage contract an asset or a liability to the lender?   Are all mortgages secured debt instruments?   Mortgages can be insured? Who insures mortgages and why?   Mortgage companies, savings institutions and commercial banks originate mortgages. Do mortgage brokers originate mortgages?  If not, what do they do?   Can mortgages be sold? If so, who buys mortgages?

ANSWER AS MANY QUESTIONS POSSIBLE THIS IS A STUDY GUIDE Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6.…

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