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- If the Loan-to-value Ratio is 75%, what is the Leverage Ratio? O a. 2.55 O b. 4.00 c. 3.50 Od 5.00 Oe 0.75Given the following information, what is expected loss of a $200,000 loan in percent? Probability of default 0.30% Loss given default 55.00% A .15% B .22% C .33% D .17%Assume that l2t =0.25% and that l1t = O. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then i1 is equal to: O A.6% O B. 5.75% O C. 5.50% O D. 5.25%
- Using the following information, calculate the RAROC. •Risk-Adjusted Return: $80,000•Loan Amount: $3,000,000•Capital Requirement: 10%•Capital Ratio: 75% a) 28.75% b) 33.33% c) 35.56% d) 38.25%. Estimate the duration of Loan MBank Balance SheetCash = $ 50Loan M (7%, 6 years) = $200Deposit N (3 years, 2%) = $ 200Equity = $ 50Total Assets = $250Total Liabilities = $ 250 a. 3.1 years b. 4.1 years c. 5.1 years d. 6.1 yearsPrepare a duration table under the following assumptions a. $100,000 balloon loan b. Annual payments c.5-year balloon d. 20-year amortization e. 7% stated rate f. 9% yield
- Prepare a duration table under the following assumptions a. $100,000 balloon loan b. Annual payments c. 5-year balloon d. 20-year amortization e. 7% stated rate f. 9% yieldWhat is the expected appreciation rate on home equity if HPo= $200,000, assuming a 2% appreciation rate and a 70% LTV? a. 2.52% b. 2.67% c. 2.80% d. 2.86%A typical loan-to-price ratio is a. 80% b. 90% c. 60% d. 70%
- Find the future value of this loan: $20,862 at 11.4% for 14 months. Group of answer choices A. $23636.65 B. $25657.00 C. $263536.51 D. $40,000.00Prepare a duration table under the following assumptions a. $100,000 fully amortizing loan b. Annual payments c. 20-year amortization d. 7% stated rate e. 7% yieldUnder a 75% LTV term loan structure, when is the balance of funds released by the lender to the vendor? Review Later Before the borrower’s equity contribution, after delivery of the asset to the borrower. After the borrower’s equity contribution, before the delivery of the asset to the borrower. Before the borrower’s equity contribution and the delivery of the asset. After the borrower’s equity contribution, and preferably after the asset is in the borrower’s possession